To link to the entire object, paste this link in email, IM or documentTo embed the entire object, paste this HTML in websiteTo link to this page, paste this link in email, IM or documentTo embed this page, paste this HTML in website

Nonparticipating candidate guide

Nonparticipating candidate guide 2004

Nonparticipating
Candidate Guide
PREPARED BY: CCEC STAFF, MARCH 2004
STATE OF ARIZONA
CITIZENS CLEAN ELECTIONS COMMISSION
2 0 0 3 - 2 0 0 4 E L E C T I O N C Y C L E
Mission Statement
“To fairly, faithfully and fully implement and administer
the Arizona Citizens Clean Elections Act.”
Table of Contents
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 1
Introduction 3
Chapter 1: How to Become a Candidate 6
Qualifications for Office 6
Statement of Organization 7
Nominating Petitions and Papers 8
Campaign Finance Software 9
Establishing a Campaign Account 9
Resign to Run Law 11
Summary & References 12
Chapter 2: Changing Participation Status and Training Classes 13
Changing Participation Status 13
Nonparticipating Candidate and Treasurer Training Classes 13
Summary & References 15
Chapter 3: Campaign Finance Reports 16
Reporting Requirements 16
Trigger Reports 17
Matching Funds for Participating Candidates 18
Summary & References 19
Chapter 4: Matching Funds for Participating Candidates 20
Primary Election Period Matching Funding 20
General Election Period Matching Funding 22
Summary & References 24
Chapter 5: Campaign Contributions 25
Definition of Contribution 25
Nonparticipating Candidate Contribution Limits 28
Contributions Reported in a Campaign Finance Report 30
Remedying an Excessive Contribution 31
Summary & References 32
Table of Contents
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 2
Chapter 6: Campaign Expenditures 33
Definition of Expenditure 33
Contents of All Campaign Finance Reports 34
Expenditures Reported in a Campaign Finance Report 35
Summary & References 38
Chapter 7: Voter Education 39
Debates 39
Candidate Statement Pamphlets 40
Summary & References 42
Chapter 8: Independent Expenditures 43
Filing an Independent Expenditure Committee 43
Definition of Independent Expenditure 43
Definition of Express Advocacy 43
What is Not Considered to be an Independent Expenditure 45
Independent Expenditure Trigger Reporting Dates 46
Matching Funds for Participating Candidates 47
Summary & References 48
Chapter 9: Post-Election 49
Terminating the Campaign Committee 49
Officeholder Expenses 49
Summary & References 51
Chapter 10: Enforcement 52
Enforcement Procedures 52
Penalties 55
Audits 55
Summary & References 57
Glossary of Terms 58
Timelines
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 3
Welcome to Arizona’s Citizens Clean Elections Commission Nonparticipating Candidate Guide for
the 2003-2004 election cycle. This Guide was created to provide information to candidates
interested in running for legislative or statewide office.
The Citizens Clean Elections Act (“Act”) is a campaign finance reform measure that was initiated by
Arizona citizens and passed by voters in 1998. The Act created a new campaign financing system
that provides full public funding to qualified candidates who agree to abide by the Act and Citizens
Clean Elections Commission (“Commission”) rules. Participating candidates for statewide offices
(governor, secretary of state, state treasurer, attorney general, superintendent of public instruction,
corporation commissioner and mine inspector) and legislative offices (house of representatives and
senate) are eligible to participate in the public funding program. The system is voluntary; candidates
may choose to participate in the system or they may choose to raise funds in the traditional manner.
Candidates who choose to raise funds with private campaign contributions are referred to as
“nonparticipating candidates.”
If you have questions, please do not hesitate to contact us at 1-602-364-3477 or toll free at 1-877-
631-8891. We look forward to working with you.
Authority
Use of this Guide is intended solely as a reference guide. Every effort has been made to present
accurate and reliable information, however, information contained in this Guide changes
periodically. As a result, this Guide may contain some inadvertent errors. The Commission would
appreciate your kindness in notifying our office of any inaccuracies, by calling us or by e-mailing a
staff member.
Readers of this Guide should take note that the information contained herein should not be
considered as having the same weight and authority as the Arizona Revised Statutes and established
court decisions or Attorney General Opinions. In the event any information conflicts, this Guide is
not controlling and users must instead follow relevant legal authority.
Additionally, the information contained in this Guide is not a satisfactory substitute for legal
counsel. If you believe that you or your committee could be adversely affected in any matter relating
to the subject matter contained herein, you should seek the professional assistance of an attorney.
Alternate Formats
This Guide is available in alternate formats. Persons who need information about the Guide in
alternate formats should call the Commission, or e-mail Paula Ortiz at paula.ortiz@ccec.state.az.us.
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 4
The Citizens Clean Elections Commission
In 1998, the people of Arizona created a clean elections system to improve the integrity of Arizona
state government by diminishing the influence of special interest money, to encourage citizen
participation in the political process, and to promote freedom of speech under the U.S. and Arizona
Constitutions.
Commissioners
The Commission consists of five commissioners. The commissioners are committed to enforce the
Act in an honest, independent, and impartial fashion. No more than two members of the
Commission shall be members of the same political party. No more than two members of the
Commission shall be residents of the same county. No one shall be appointed as a member who
does not have a voter registration that has been continuously recorded for at least five years
immediately preceding appointment with the same political party or as an independent.
(Chair) David McKay (R), Flagstaff (Term ending Jan. 31, 2005)
Kathleen S. Detrick (I), Tucson (Term ending Jan. 31, 2006)
Ermila Jolley (D), Yuma (Term ending Jan. 31, 2007)
Marcia Busching (D), Phoenix (Term ending Jan. 31, 2008)
Tracey A. Bardorf (R), Scottsdale (Term ending Jan. 31, 2009)
Sources of Funding
• $5 Tax Check-Off on the Arizona State Income Tax Return
• Dollar-for-Dollar Tax Credit on the Arizona State Income Tax Return
• 10% Surcharge on Civil Penalties and Criminal Fines
• $5 Qualifying Contributions
• Civil Penalties from Enforcement Actions
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 5
Contact Information
Citizens Clean Elections Commission Secretary of State’s Office
1616 W. Adams, Suite 110 Administration / Elections:
Phoenix, AZ 85007 Capitol Executive Tower 7th Floor
(602) 364-3477 1700 West Washington Street
(602) 364-3487, fax Phoenix, AZ 85007-2888
1-877-631-8891, toll free (602)542-4285 or (800)458-5842
www.ccec.state.az.us (602) 542-6172, fax
elections@sos.state.az.us
www.sos.state.az.us
Commission Staff
Executive Director
Colleen Connor
Deputy Director
Eric Gorsegner
Campaign Finance Analyst
Rebecca Hecksel
Voter Education Manager
Autumn Southard
Fiscal Services Manager
Colleen McGee
Executive Assistant
Paula Ortiz
Administrative Assistant
Christina Jones
Administrative Assistant
Emily Garcia
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 6
Chapter 1 takes prospective candidates through the preliminary steps on how to register as a
candidate for the 2003-2004 election cycle.
I. Qualifications for Office
Every person elected to any elective office of the state shall be a qualified elector of the political
division in which the person seeks election at the time of filing the nomination papers.
A qualified elector is a person who is properly registered to vote. The qualifications of a person who
is properly registered to vote are all of the following:
• A citizen of the United States.
• 18 years of age or more on or before the date of the next regular general election following
his registration.
• A resident of the state 29 days preceding the next election.
• Able to write name or make mark, unless prevented from doing so by physical disability.
• Has not been convicted of treason or a felony, unless restored to civil rights.
• Has not been adjudicated an incapacitated person.
Every candidate must meet basic qualifications for public office prescribed by the Arizona
Constitution and Arizona Revised Statutes.
State Legislature
Qualifications
• A citizen of the United States at the time of the election.
• At least 25 years of age.
• A resident of Arizona at least three years.
• A resident of the county from which the person is elected at least one year before the
election.
Job Description
The Legislature is a state lawmaking body that proposes and enacts laws, appropriates funds
for the support of the State government, proposes amendments to the State Constitution
and provides public forums for hearings and debates about bills. A legislator may not serve
more than four terms consecutively.
State Senate: The term for Senators is two years.
State House of Representatives: The term for Representatives is two years.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 7
Corporation Commission
Qualifications
Arizona law does not set minimum age or length of residency requirements for a person
who holds the office of corporation commissioner. The law, however, does give specific
requirements for persons elected, appointed to, or holding the office of commissioner and
appointees or employees of the Corporation Commission. They shall NOT be:
• A person in the employ of or holding an official relation to a corporation.
• A person subject to regulations by the Corporation Commission.
• A person owning stocks or bonds of a corporation subject to regulation.
• A person who is pecuniarily interested therein.
Job Description
The Corporation Commission regulates rates charged by gas, water, sewer, electric and
telephone utilities; regulates issuance and enforcement securities; and regulates formation
and filings by all corporations doing business in Arizona. There are five commissioners. The
term for corporation commissioner is four years. A corporation commissioner may not
serve more than two terms consecutively.
II. Statement of Organization
Once an individual determines that he or she meets the qualifications to seek elective office, the next
step is for the individual to file a statement of organization in order to establish the campaign
committee. All campaign committees must file a statement of organization with the Secretary of
State’s Office. The statement of organization may NOT be filed with the Commission.
When to File the Statement of Organization
Each candidate, or individual exploring whether to become a candidate, who intends to receive
contributions or make expenditures of more than $500 in connection with a campaign for office
shall file a statement of organization in order to establish the candidate's campaign committee or
exploratory committee. An individual must file a statement of organization before:
• Making any expenditures,
• Accepting any contributions,
• Distributing any campaign literature, or
• Circulating any petitions.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 8
Contents of Statement of Organization
The statement of organization shall include all of the following:
1. The name, address and type of committee.
• The candidate, or possible candidate, must designate the type of committee, either a
Candidate Committee or Exploratory Committee.
• A Candidate Committee is a political committee designated and authorized by the
candidate. A candidate must establish a candidate committee to qualify for the ballot.
• An Exploratory Committee gives an individual the opportunity to raise and spend
monies in order to explore the possibility of running for office without officially
declaring candidacy. Once the individual makes the decision to run for office, the
individual must establish a candidate committee. A candidate is not required to file an
exploratory committee during the exploratory period.
2. The names, addresses, telephone numbers, occupations and employers of the chairman and
treasurer of the committee. It is permissible for a candidate to be the chairman and treasurer
of his or her own campaign committee.
3. The name, address, office sought and party affiliation of the candidate.
4. Name of the banking institution used by the committee.
Number of Committees
Exploratory Committee: An individual may have only one exploratory committee in existence at a
time.
Candidate Committee: A candidate may have only one campaign committee designated for each
election, however, a candidate may have more than one active campaign committee from different
elections simultaneously in existence.
III.Nominating Petitions & Papers
To qualify for the election ballot, a candidate must meet the following standards:
• For the primary election, a candidate must be an independent candidate, or must properly
file nominating papers and nominating petitions with signatures for the primary election of a
political party entitled to continued representation on the official ballot, or must file the
proper paper work with the Secretary of State to be a write-in candidate.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 9
• For the general election, a candidate must be an independent candidate, or must be a party
nominee of a political party recognized on the official ballot, or must file the proper paper
work with the Secretary of State to be a write-in candidate.
Timeline for Filing Nominating Papers and Petitions
The 30-day period in which candidates may file nominating papers and nominating petitions with
signatures with the Secretary of State’s Office is specified in the chart below:
IV. Campaign Finance Software
After the candidate files the Statement of Organization, the Secretary of State’s Office will give the
candidate the following:
1. Campaign Finance Software 2004 CD-Rom. All campaign finance reports must be filed
electronically with the Secretary of State’s Office using computer software that is provided
by the Secretary of State.
2. A personal identification number (pin) number to access the campaign finance software.
3. A packet of useful information pertaining to the 2003-2004 election cycle.
V. Establishing a Campaign Account
Before a candidate accepts contributions or makes expenditures, the candidate must designate a
financial institution for the campaign account. The candidate shall notify the Secretary of State’s
Office of the designation of the financial institution either at the time of filing the statement of
organization or within five business days after opening an account. All withdrawals or
disbursements from the campaign account require the authorization of the treasurer or a designated
agent of the campaign committee.
During an election cycle, each candidate shall conduct all campaign financial activities through a
single, current election campaign account and any petty cash accounts, as are permitted by law.
FILING PERIOD FOR ALL CANDIDATES
Legislature: May 10, 2004 - June 9, 2004
Corporation Commission: May 10, 2004 – June 9, 2004
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 10
Petty Cash Accounts
A candidate’s campaign committee may establish one or more petty cash accounts.
When reporting the use of petty cash in a campaign finance report, the individual expenditures made
with the cash do NOT need to be reported; only the actual cash withdrawal is required to be
included in campaign finance reports. The campaign treasurer, however, is required to maintain a
record of all expenditures made with petty cash. The record shall identify the name and address of
every person to whom an expenditure is made, the date, and the amount and purpose or reason for
the expenditure. The Commission recommends that the treasurer keep a running total of all petty
cash withdrawals and expenditures.
USE OF PETTY CASH EXAMPLE
On July 16, 2004, a nonparticipating candidate withdraws $200 in cash from the campaign account
to use as petty cash. In the campaign finance software, the candidate shall enter an expenditure for
$200, dated July 16, 2004, payable to the person who withdrew the cash, and a memo stating “petty
cash.” The candidate provides the receipts from the expenditures to the treasurer and the treasurer
retains the following documentation for campaign records:
Petty Cash Expenditures
July 20, 2004 $50 Home Depot lumber for signs
July 21, 2004 $75 Sign Central bumper stickers
July 27, 2004 $75 Kinkos copies of flyers
Prior Campaign Accounts
A candidate may not use a prior campaign account during the current election cycle.
Records and Bookkeeping of Campaign Treasurer
The treasurer of the campaign committee is the custodian of the committee's books and accounts
and shall keep an account of all of the following:
1. All contributions or monies received by or on behalf of the committee.
2. The identification of any person that makes any contribution, the date and amount of each
contribution, and the date of deposit into the campaign account.
3. Cumulative totals contributed by each individual.
4. The name and address of every person to whom any expenditure is made, the date, amount
and purpose or reason for the expenditure.
5. All bank statements for the designated campaign account.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 11
The treasurer shall record a contribution made by check or money order as a contribution by the
person whose signature or name appears on the bottom of the instrument or who endorses the
check or money order before delivery to the committee. If a contribution is made by more than one
person in a single check, the treasurer shall record the amount to be attributed to each contributor.
The treasurer shall preserve all records specified above and copies of all campaign finance reports
for three years after the election.
Access to Records
During the primary election period and the general election period, all candidates shall make
available for public inspection all bank accounts, campaign finance reports, and financial records
relating to the candidate's campaign, either by immediate disclosure through electronic means or at
the candidate's campaign headquarters.
1. All candidates shall maintain at a single location within the state, the books and records of
financial transactions. In all cases, all such information shall be made available for inspection
by the Commission during regular business hours.
2. On request of the attorney general, the county, city or town attorney or the Secretary of
State, the treasurer shall provide any of the records required to be kept by the campaign
treasurer.
VI. Resign to Run Law
The resign to run law applies to incumbent elective officers who seek election to any public office
other than the office that the incumbent is currently holding. If an elected official wishes to declare
his or her candidacy anytime before the final year of the term being held, the officeholder must first
resign his or her office. An elected official is not deemed to have offered himself or herself for
nomination or election to an office or to have made a formal, public declaration of candidacy solely
by his or her designation of a candidate campaign committee.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 12
Summary
􀂙􉥉 In order to run for state or legislative office, a candidate must first file the statement of
organization with the Secretary of State.
􀂙􉥁 A statement of organization must be filed before accepting any contributions, making any
expenditures and collecting any ballot petition signatures.
􀂙􉥔 The Campaign Finance Software, provided by the Secretary of State, must be used to file all
campaign finance reports.
􀂙􉥁 A candidate must establish a single bank account through which all campaign transactions
are processed.
􀂙􉥁 A candidate may establish petty cash accounts.
􀂙􉥔 The campaign treasurer is responsible for maintaining all committee records.
􀂙􉥁 An elected official must resign in order to declare his candidacy for a different elective office,
except when the officer is in the final year of the current elective office.
References
􀂙􉥑 Qualifications for office
• Qualified Elector - Arizona Constitution Article VII, § 15 & A.R.S. § 16-101(A)(1-6)
• Legislature – Arizona Constitution Article V, §§ 1 and 2
• Corporation Commission – A.R.S. § 40-101
􀂙􉥐 Petty cash accounts
• A.R.S. § 16-904(B)
􀂙􉥒 Records and bookkeeping of the campaign treasurer
• A.R.S. § 16-904
􀂙􉥒 Resign to run
• A.R.S. § 38-296
Chapter 2: Changing Participation
Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 13
Chapter 2 takes candidates through the steps on changing participation status, if they so choose,
and learning more about the Act through Commission sponsored training classes. A candidate
who is interested in changing their status from nonparticipating to participating may make this
change during the exploratory and qualifying periods only.
I. Changing Participation Status
A nonparticipating candidate who has accepted contributions up to the limits permissible for
nonparticipating candidates, but later chooses to run as a participating candidate, shall:
• Make the change to participating candidate status during the exploratory and qualifying
periods only;
QUALIFYING PERIOD
January 1, 2004 – August 19, 2004: Legislative Candidates
August 1, 2003 – August 19, 2004: Statewide Candidates
EXPLORATORY PERIOD
November 6, 2002 – December 31, 2003: Legislative Candidates
November 6, 2002 – July 31, 2003: Statewide Candidates
• Return the amount of each contribution in excess of the individual contribution limit for
participating candidates;
• Return all Political Action Committee (PAC) monies received;
• Not have spent contributions exceeding the aggregate early contribution limit, or any part of
a contribution exceeding the individual early contribution limit of $110;
• Comply with all contribution and spending limits required of a participating candidate for
the election cycle.
II.Nonparticipating Candidate and Treasurer Training Classes
The Commission staff conducts training classes for nonparticipating candidates and campaign
treasurers.
If a candidate or a treasurer cannot attend a training class but would like to review training materials,
he or she may contact the Commission and the Commission will send training materials to the
candidate or the treasurer.
Chapter 2: Changing Participation Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 14
For the 2003 – 2004 election cycle, the schedule for the training classes for nonparticipating
candidates and treasurers are as follows:
NONPARTICIPATING CANDIDATE TRAINING CLASSES
Date & Time Location
March 31, 2004 6:00pm Phoenix, Commission Conference Room
April 28, 2004 6:00pm Phoenix, Commission Conference Room
May 25, 2004 6:00pm Phoenix, Commission Conference Room
TREASURER TRAINING CLASSES
Date & Time Location
March 29, 2004 6:00pm Phoenix, Commission Conference Room
April 26, 2004 6:00pm Phoenix, Commission Conference Room
May 18, 2004 6:00pm Phoenix, Commission Conference Room
June 17, 2004 6:00pm Phoenix, Commission Conference Room
The Commission may sponsor additional training classes, as needed. Check the Commission
website at www.ccec.state.az.us for updates on training class dates.
Chapter 2: Changing Participation Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 15
Summary
􀂙􉥁 A nonparticipating candidate may choose to become certified as a participating candidate
during the exploratory and qualifying periods only.
􀂙􉥔 The Commission offers training classes for nonparticipating candidates and for campaign
treasurers.
References
􀂙􉥒 Requirements for a nonparticipating candidate to become eligible for participating candidate
status
• A.A.C. R2-20-104(A) & (B)
􀂙􉥖 Voluntary termination of participating candidate status
• A.A.C. R2-20-108
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 16
Nonparticipating candidates are required to file six period campaign finance reports during the
election cycle. Nonparticipating candidates may also be required to file “trigger” reports when
contributions and expenditures meet and exceed certain thresholds.
I. Reporting Requirements
Nonparticipating candidates are required to file six period campaign finance reports during the
election cycle. Nonparticipating candidates may also be required to file “trigger” reports when
contributions and expenditures meet and exceed certain thresholds.
The following chart lists the required period reports and the deadlines for filing the reports. The six
period reports are required of all candidates, whether participating or nonparticipating. All reports
must be filed electronically with the Secretary of State’s Office using the Secretary of State’s
campaign finance software.
NONPARTICIPATING CANDIDATE REPORTING REQUIREMENTS
Due Date Name of Report Covered Period
February 2, 2004 January 31st Report (Period 1) covering November 26, 2002 to
December 31, 2003.
June 30, 2004 June 30th Report (Period 2) covering January 1, 2004 to May
31, 2004.
August 26, 2004 Pre-Primary Report (Period 3) covering June 1, 2004 – August
18, 2004.
October 7, 2004 Post-Primary Report (Period 4) covering August 19, 2004 to
September 27, 2004.
October 21, 2004 Pre-General Report (Period 5) covering September 28, 2004 to
October 13, 2004.
December 2, 2004 Post-General Report (Period 6) covering October 14, 2004 to
November 22, 2004.
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 17
II. Trigger Reports
Nonparticipating candidates must file a series of original and supplemental campaign finance reports
with the Secretary of State’s Office, above and beyond the six period campaign finance reports,
when certain dollar amount thresholds are met or are exceeded. These additional campaign finance
reports are required of all nonparticipating legislative and statewide office candidates regardless of
whether there is a participating candidate in the race. The reports are used by the Commission to
trigger equalization of funding for participating candidates running campaigns under the Act.
1. Nonparticipating candidates must file an original report on the correct filing date, when in
the:
• Primary Election Period: Expenditures through the primary election exceed 70%
of the primary election spending limit; or
• General Election Period: Total contributions made to any date during the general
election period, less expenditures made through the primary election, exceed 70% of
the general election spending limit.
2. Nonparticipating candidates must file supplemental reports, (commonly referred to as
“trigger reports”) which are triggered after the original report has been made, on the
correct filing date each time in the:
• Primary Election Period: Expenditures exceed 10% of the original primary
election spending limit or $25,000, whichever is lower, before the general election
period; or
• General Election Period: Contributions less expenditures through the primary
election exceed 10% of the original general election spending limit or $25,000,
whichever is lower, during the general election period.
Trigger Levels
The following chart summarizes the amounts that trigger reports during the primary and general
election periods:
Office
Primary Election
Spending Limits
70% / 10%
General Election
Spending Limits
70% / 10%
Corporation
Commissioner $45,280 $31,696 /
$4,528 $67,920 $47,544 /
$6,792
Legislature $11,320 $7,924 /
$1,132 $16,980 $11,886 /
$1,698
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 18
Trigger Reporting Dates
Below is a chart of original and supplemental trigger reporting dates. When a nonparticipating
candidate reaches a trigger threshold, the nonparticipating candidate is required to file a campaign
finance report by the next due date listed in the chart. It is important to note that a nonparticipating
candidate is NOT required to file a campaign finance report on each one of these due dates; only the
due date immediately following a trigger level being reached.
NONPARTICIPATING CANDIDATE
2004 TRIGGER REORTING DATES
January 1
February 1
March 1
April 1
May 1
June 1
July 1, 6, 13, 20, 27
August 3, 10, 17, 24, 25, 26, 27, 30, 31
September 1, 2, 3, 7, 8, 14, 21, 28
October 5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
November 1, 2, 3
December none
III. Matching Funds for Participating Candidates
Please refer to the Chapter 4 for details regarding matching funds calculations and the process
through which participating candidates receive matching funding.
Important Note:
Trigger Reports
The campaign finance software provided by the Secretary of State’s Office is programmed
for the triggering events and will prompt the user to file a report whenever appropriate. The
software must be opened and used every day during an election cycle in order for the
triggering events to occur properly. If the campaign transactions are not entered into the
software on a daily basis, a nonparticipating candidate may inadvertently miss a trigger-reporting
deadline.
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 19
Summary
􀂙􉥁 All candidates are required to file six period campaign finance reports during the 2004
election cycle.
􀂙􉥎 Nonparticipating candidates may be required to file “trigger” campaign finance reports when
certain contribution and expenditure thresholds are met and/or exceeded.
􀂙􉥔 The campaign finance software must be used on a daily basis in order for the software to
correctly prompt the user to file trigger reports.
References
􀂙􉥐 Period campaign finance reports
• A.R.S. § 16-913
􀂙􉥔 Trigger campaign finance reports
• A.R.S. § 16-941(B)(2)
• A.R.S. § 16-958
Chapter 4: Matching Funds for
Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 20
When nonparticipating candidates exceed the primary and general election spending limits
established by the Act, participating opponents are entitled to receive matching funds. Chapter
4 explains how matching funds are calculated and disbursed to participating candidates.
DATES OF PRIMARY ELECTION PERIOD
Legislative Offices: July 6, 2004 – September 7, 2004
Statewide Offices: July 6, 2004 – September 7, 2004
I. Primary Election Period Matching Funding
Participating candidates may receive matching funding in the primary election period if their
nonparticipating opponents make expenditures in excess of the primary election spending limit.
Beginning July 6, 2004, the start of the primary election period, the Commission will immediately
provide participating candidates with matching funds whenever expenditures made by a
nonparticipating candidate in the same party primary exceed the primary election spending limit.
PRIMARY ELECTION PERIOD MATCHING FUNDS EXAMPLE
Assumption: 1 legislative seat, 2 candidates
1 participating, 1 nonparticipating
Nonparticipating candidate spends $15,000
Primary election spending limit $11,320
Matching funds provided $3,680
Primary Election Period Matching Funds Limits
The chart below shows the initial primary funding, the maximum primary matching funding and the
maximum primary total funding that is available to participating candidates in the primary election
period. The total monies distributed to a candidate during the primary election period will not
exceed three times the original primary election spending limit.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 21
PRIMARY ELECTION
PERIOD
INITIAL
PRIMARY
FUNDING
MAXIMUM
MATCHING
FUNDS
MAXIMUM
TOTAL
FUNDS
Legislature $11,320 $22,640 $33,960
One-Party-Dominant $16,980 $33,960 $50,940
Independent Legislative $19,810 N/A $19,810
Corporation Commission $45,280 $90,560 $135,840
Independent Corporation
Commission Candidates $79,240 N/A $79,240
Exceptions:
Candidates who have chosen the one-party-dominant reallocation option: Primary
matching funds will start for a participating candidate who has chosen the reallocation option
whenever a nonparticipating opponent exceeds the adjusted primary election spending limit of
$16,980.
Unopposed candidates: Unopposed participating candidates are not eligible to receive
matching funds in the primary election period.
Independent candidates: Independent participating candidates are not eligible to receive
matching funds in the primary election period.
Independent Expenditures
Chapter 8 explains how a participating candidate may be eligible to receive matching funds when an
independent expenditure advocates the election or defeat of a particular candidate.
Process of Providing Matching Funds
1. The Commission staff receives instant notification from the Secretary of State’s Office
whenever nonparticipating candidates file a campaign finance report.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Trigger Reports & Reporting Dates
Please refer to Chapter 3 for information on filing trigger reports and reporting dates.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 22
DATES OF GENERAL ELECTION PERIOD
Legislative Offices: September 8, 2004 – November 2, 2004
Statewide Offices: September 8, 2004 – November 2, 2004
II. General Election Period Matching Funding
Participating candidates may receive matching funding in the general election period if their
nonparticipating opponents receive contributions, minus expenditures made through the primary
election, in excess of the general election spending limit.
GENERAL ELECTION PERIOD MATCHING FUNDS EXAMPLE
Assumption: 1 legislative seat, 2 candidates
1 participating, 1 nonparticipating
Nonparticipating candidate’s total contributions $40,000
Nonparticipating candidate’s primary election expenditures $20,000
Difference $20,000
General Election Spending Limit $16,980
Matching funds provided $3,020
General Election Period Matching Funds Limits
The chart below shows the initial general election funding, the maximum general matching funding
and the maximum general total funding. The total monies distributed to a candidate, during the
general election period, will not exceed three times the original general election spending limit.
GENERAL ELECTION
PERIOD
INITIAL
GENERAL
ELECTION
FUNDING
MAXIMUM
MATCHING
FUNDS
MAXIMUM
TOTAL
FUNDS
Legislature $16,980 $33,960 $50,940
One-Party-Dominant $11,320 $22,640 $33,960
Independent Legislative
Candidates N/A $33,960 $53,770
Corporation Commission $67,920 $135,840 $203,760
Independent Corporation
Commission Candidates N/A $135,840 $215,080
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 23
Exceptions:
Candidates who have chosen the one-party-dominant reallocation option: General
election matching funds will start for a participating candidate who has chosen the
reallocation option whenever a nonparticipating opponent exceeds the adjusted general
election spending limit of $11,320.
Unopposed participating candidates: Unopposed participating candidates are not eligible
to receive matching funds in the general election period.
Unopposed nonparticipating candidates in primary election: Expenditures made
during the primary election period by or on behalf of an independent candidate or a
nonparticipating candidate who was unopposed in a party primary, shall be treated as though
made during the general election period. Therefore, the matching funds calculations will not
include any expenditures made by nonparticipating candidates during the primary election
period.
Process of Providing Matching Funds
1. The Commission staff receives instant notification from the Secretary of State’s Office
whenever nonparticipating candidates file a campaign finance report.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Transfer of Funds and Impact on Matching Funds
A nonparticipating candidate’s transfer of surplus funds from a previous election cycle to an account
to be used in the present election will be considered a contribution, and will be included in the
calculation of matching funds for the general election.
Independent Expenditures
Chapter 8 explains how a participating candidate may be eligible to receive matching funds when an
independent expenditure advocates the election or defeat of a particular candidate.
Trigger Reports & Reporting Dates
Please refer to Chapter 3 for information on filing trigger reports and reporting dates.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 24
Summary
􀂙􉥐 Participating candidates may receive matching funds in the primary election cycle if their
nonparticipating opponent makes expenditures in excess of the primary election spending
limit.
􀂙􉥐 Participating candidates may receive a total of three times the original primary election
spending limit from the Commission during the primary election cycle.
􀂙􉥐 Participating candidates may receive matching funds in the general election cycle if their
nonparticipating opponent receives contributions, minus expenditures made in the primary
election period, in excess of the general election spending limit.
􀂙􉥐 Participating candidates may receive a total of three times the original primary election
spending limit from the Commission during the primary election cycle, and a total of three
times the original general election spending limit from the Commission during the general
election cycle.
References
􀂙􉥍 Matching funds calculations
• A.R.S. § 16-952(B) & (E)
• A.A.C. R2-20-113
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 25
The Clean Elections Act reduces the amount of contributions that nonparticipating legislative and
statewide office candidates are permitted to accept. The contribution limits below reflect the adjusted
contribution limits. “Contribution” means any gift, subscription, loan, advance or deposit of
money or anything of value made for the purpose of influencing an election.
I. Definition of Contribution
“Contribution” means any gift, subscription, loan, advance or deposit of money or anything of value
made for the purpose of influencing an election.
Contribution Includes the Following:
• A contribution made to retire campaign debt.
• Money or the fair market value of anything directly or indirectly given or loaned to an
elected official for the purposes of defraying the expense of communications with
constituents, regardless of whether the elected official has declared his or her candidacy.
• The entire amount paid to a political committee to attend a fund-raising or other political
event and the entire amount paid to a political committee as the purchase price for a
fund-raising meal or item. However, it is not considered to be a contribution if the
actual cost of the meal or fund-raising item is for the purchaser’s personal use and not
for resale, and the actual cost is the entire amount paid by the purchaser in connection
with the event. The exception does not apply to auction items.
• Unless specifically exempted, the provision of goods or services without charge or at a
charge that is less than the usual and normal charge for such goods and services.
Contribution Does NOT Include the Following:
1. Personal Services & Travel Expenses
• The value of services provided without compensation by any individual who
volunteers on behalf of a candidate, a candidate’s campaign committee or any other
political committee.
• Any reimbursed payment for personal travel expenses made by an individual who, on
his or her own behalf, volunteers his or her personal services to a candidate.
• Legal or accounting services provided to a candidate at no cost. This exemption
only applies if the only person paying for the services is the regular employer of the
person rendering the services and if services are solely for the purpose of compliance
with A.R.S., Title 16.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 26
2. Duties of Elected Officials
• Money or the value of anything directly or indirectly provided to defray the expense
of an elected official meeting with constituents if the elected official is engaged in the
performance of the duties of his or her office or provided by the state or a political
subdivision to an elected official for communication with constituents if the elected
official is engaged in the performance of the duties of his or her office.
3. Property, Food & Beverages
• An individual may use personal property, including their home, a church or
community room used on a regular basis by members of a community for
noncommercial purposes, in the course of volunteering for a candidate. For
candidate-related activities, each adult in the household may spend up to $100 for
invitations, food and beverages only, which does not count as a contribution to the
candidate. Any amount over $100, or for any other purpose, will need to be
reported as an in-kind contribution from the individual and is subject to individual
contribution limits, or the campaign will have to pay as a campaign expenditure.
4. Political Party Activities
• Slate cards and sample ballots:
The payment by a political party for printing and postage expenses for slate cards,
sample ballots, and other written materials that substantially promote three or more
nominees of the party for public office. This exemption does not apply if costs are
for a display of the listing of candidates made on telecommunications systems or in
newspapers, magazines or similar types of general circulation advertising.
• Campaign Materials:
The political parties purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the
party in connection with volunteer activities on behalf of any nominee of the party.
This exemption does not apply if payments are used for the costs of campaign
materials or activities used in connection with any telecommunications system,
newspaper, magazine, billboard, direct mail or similar type of general public
communication or political advertising.
5. Independent Expenditures
• An expenditure by a person or political committee, other than a candidate’s
campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, and that is made without cooperation or consultation with any
candidate, candidate committee or candidate agent. See Chapter 8 for more information
on independent expenditures.
6. Bank
• Monies loaned by a state bank, a federally chartered depository institution or a
depository institution. In order for this exemption to apply, this loan shall be
deemed a loan by each endorser or guarantor, in that proportion of the unpaid
balance that each endorser or guarantor bears to the total number of endorsers or
guarantors, the loan shall be made on a basis that assures repayment, evidenced by a
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 27
written instrument, shall be subject to a due date or amortization schedule and shall
bear the usual and customary interest rate of the lending institution.
• Interest or dividends earned by a political committee on any bank accounts, deposits
or other investments of the political committee. Participating candidates may NOT
spend these monies. Participating candidates must send this money to the
Commission at the end of the primary election period and at the end of the general
election period.
7. Transfer for Joint Fundraiser
• A transfer between campaigns to distribute monies raised through a joint fund-raising
effort in which each candidate pays a proportionate share of the fundraising
expenses and receives a proportionate share of the funds that are raised.
8. Vendor Extension of Credit
• An extension of credit for goods and services made in the ordinary course of the
vendor's business. This applies only if the vendor provides similar terms of credit to
other nonpolitical customers and makes a reasonable attempt to collect the debt. If
the candidate does not pay the debt after 6 months, it shall be deemed receipt of a
contribution by the candidate, but not a contribution by the creditor. If a candidate
receives an extension of credit, it shall be considered to be outstanding debt and it
shall be included in campaign finance reports filed by the candidate with the
Secretary of State.
9. Officeholder expenditures
• See Chapter 9 for more information on the officeholder expenses rule.
Important Note:
Contribution Prohibitions
A lobbyist may not give a contribution to a legislator or the Governor when the legislature is in
regular session. In addition, lobbyists may not solicit contributions on behalf of a legislator or
the Governor when the legislature is in regular session.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 28
II. Nonparticipating Candidate Contribution Limits
The Clean Elections Act reduces the amount of contributions that nonparticipating legislative and
statewide office candidates are permitted to accept. The contribution limits below reflect the
adjusted contribution limits. There is also no limit on total contributions a nonparticipating
candidate may accept.
Contribution Limits
Legislative Offices
Statewide Offices
Individual’s contribution to a
candidate
$280
$720
Political Committee’s
contribution to a candidate
$280
$720
Super PAC’s contribution to
a candidate
$1,440
$3,600
Nominee’s total from
political party and all political
organizations combined
$7,192
$71,888
Total contributed by an
individual to candidates and
committees who give to
candidates
$3,360 in a calendar year
$3,360 in a calendar year
Personal Monies
There is no limit on the amount a nonparticipating candidate or a nonparticipating candidate’s
family member may contribute to his campaign. Family member is defined as a parent, grandparent,
spouse, child or sibling of the candidate or a parent or spouse of any of those aforementioned
persons.
When a nonparticipating candidate contributes more than $11,840 (legislature)/$23,670 (statewide)
in personal monies to his or her own campaign, the candidate is held to certain notification
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 29
requirements. The nonparticipating candidate must send a written notice indicating the amount
contributed or promised, within 24 hours excluding weekends and holidays, by certified mail, to the
Secretary of State’s Office and to all opposing candidates and their campaign committees. Opposing
nonparticipating candidates then are no longer restricted to the contributions limits (shown in the
above table) and may raise contributions without restriction until such time that they have raised up
to the amount of personal monies contributed or promised to the candidate giving the notification.
Once a candidate has raised monies up to the level of the candidate giving the notification, the
candidate is again held to the contribution limits (shown in the above table).
After the initial notification, each time the candidate contributes or promises to contribute personal
monies exceeding an additional $5,920 (legislature)/$11,840 (statewide), the candidate must again
notify the Secretary of State’s Office as well as all opposing candidates by certified mail within 24
hours, and the contribution limits are again removed from all nonparticipating opponents.
Please refer to the table below for the personal monies notification levels.
Office
Initial Personal Money
notification level
Additional notification
level
Legislature
$11,840
$5,920
Corporation Commission
(Statewide)
$23,670
$11,840
PERSONAL MONIES CONTRIBUTION EXAMPLE
A nonparticipating legislative candidate gives $12,000 to his own campaign. Because this amount is
over the notification level of $11,840, the candidate must notify the Secretary of State’s Office and
his opposing candidates, by certified mail within 24 hours excluding weekends and holidays, that he
has contributed personal monies totaling $12,000 to his own campaign. His opposition may then
go out and raise contributions from political committees, individuals, political parties and all
political organizations totaling $12,000. The contribution limits per political committee, individual,
and political organization are off. An individual can contribute more than $280, a political
committee can contribute $280 and political organizations can contribute more than $7,192 to any
of the opposing candidates.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 30
In-Kind Contributions
An in-kind contribution is a contribution of goods or services or anything of value that is not a
monetary contribution. An individual may give candidates both in-kind contributions and monetary
contributions, however the combined total contributed to the candidate may not exceed
$280/person (legislature) or $720/person (statewide).
In-kind contributions must be assessed at a fair value and must be included in campaign finance
reports filed by the candidate with the Secretary of State.
IN-KIND CONTRIBUTION EXAMPLE
A contributor has 4 boxes of printer paper lying around her home that she would like to donate to
a nonparticipating candidate’s campaign. This would be considered an in-kind contribution by the
contributor to a candidate’s campaign. The in-kind contribution is permissible as long as the
contributor has not already reached her personal contribution limit of $280 (legislative)/$720
(statewide). The candidate needs to asses a fair market value for the paper and she decides on $25
per box. The candidate, therefore, needs to include in the next campaign finance report that she
has received an in-kind contribution of $100 to her campaign and she needs to include a
description of what the in-kind contribution was (example: 4 boxes of printer paper).
Loans
A loan is a contribution. The contribution limits apply to loans. A loan in excess of the contribution
limits is illegal whether or not it is repaid.
III. Contributions Reported in a Campaign Finance Report
A campaign finance report must include all contributions accepted by the committee through the
end of the reporting period. It is the candidate and the treasurer’s responsibility to ensure that all
contributions are entered in the campaign finance software. Entering campaign contributions into
the software on a daily basis is a crucial component of complying with campaign finance laws.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 31
It is the treasurer’s responsibility to communicate to staff the importance of turning in receipts so
that the campaign can remain in compliance with the campaign finance law. The date the
contribution is received is the date used in reporting the contribution. An expenditure made by a
campaign staffer using personal funds is considered a contribution to the campaign, unless the
staffer was given an advance for the expenditure, is reimbursed the same day the expenditure was
made, or the expenditure was for travel and the staffer will not seek reimbursement.
Each contribution reported in a campaign finance report shall include the name, address and
occupation of the contributor. Contributions of $25 or less may be aggregated. The campaign
finance software provides separate sections for the user to enter those contributions less than and
those greater than $25.
IV. Remedying an Excessive Contribution
If a candidate receives a contribution that exceeds the contribution limits, the candidate must refund
the excessive contribution to the contributor. The candidate must enter the original amount
received and the refunded amount in the campaign finance software. The software contains a
designated section to key in refunded contributions.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 32
Summary
􀂙􉤜 “Contribution” means any gift, subscription, loan, advance or deposit of money or anything
of value made for the purpose of influencing an election.
􀂙􉥎 Nonparticipating candidates are subject to limitations on contributions from individuals,
PACs and political parties, however there is no aggregate contribution limit.
􀂙􉥁 An in-kind contribution is a contribution of goods or services or anything of value that is
not a monetary contribution.
􀂙􉥁 A campaign finance report filed by a nonparticipating candidate shall include all
contributions received through the end of the reporting period.
References
􀂙􉥎 Nonparticipating candidate contribution limits
• A.R.S. § 16-905
• A.R.S. § 16-941(B)(1)
􀂙􉥄 Definition of contribution
• A.R.S. § 16-901(5)
􀂙􉥐 Personal monies notification
• A.R.S. § 16-905(F)
􀂙􉥄 Definition of in-kind contribution
• A.R.S. § 16-901(15)
􀂙􉥃 Campaign loans
• A.R.S. § 16-901(5)(a)(ii)
􀂙􉥃 Contents of campaign finance reports
• A.R.S. § 16-915
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 33
A campaign expenditure is incurred when a committee makes a direct payment to a vendor or
incurs debt. A campaign finance report must include all expenditures made by the committee
through the end of the reporting period.
I. Definition of Expenditure
An “expenditure” is any purchase, payment, distribution, loan, advance, deposit or gift of money or
anything of value made by a person for the purpose of influencing an election in this state. The
definition of expenditure includes a contract, promise or agreement to make an expenditure
resulting in an extension of credit and the value of any in-kind contribution received.
Expenditure Does NOT Include the Following:
• A news story, commentary or editorial distributed through any telecommunications
system, newspaper, magazine or other periodical publication. This exemption does not
apply if the publications’ facilities are owned or controlled by a political committee,
political party or candidate.
• Nonpartisan activity designed to encourage individuals to vote or to register to vote.
• The payment by a political party of the costs of preparation, display, mailing or other
distribution incurred by the party with respect to any printed slate card, sample ballot or
other printed listing of three or more candidates for any elective office. This exemption
does not apply if the display of candidates is made on any telecommunications system or
in newspapers, magazines or similar types of general public political advertising.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the
party in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political
advertising.
• Any deposit or other payment filed with the Secretary of State or any other similar
officer to pay any portion of the cost of printing an argument in a publicity pamphlet
advocating or opposing a ballot measure.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 34
II. Contents of All Campaign Finance Reports
All campaign finance reports shall include the following information regarding the campaign’s
receipts and disbursements:
1. The amount of cash on hand at the beginning of the reporting period.
2. For the reporting period and the election, the total amount of all receipts and an itemized list
of all receipts in the following categories, together with the total of all receipts in each
category:
a. Contributions from individuals.
b. Contributions from political committees.
c. For a candidate's campaign committee, the candidate's contribution or promise of
personal monies, including loans guaranteed by the candidate.
d. All other loans.
e. Rebates, refunds and other offsets to operating expenditures.
f. Dividends, interest and other forms of receipts.
g. The value of in-kind contributions.
3. The identification of each:
a. Individual who makes any contribution during the period covered by the report
whose total contribution or contributions for that election have an aggregate amount
exceeding twenty-five dollars together with the date and amount of the
contributions. Contributions of twenty-five dollars or less may be aggregated.
b. Political committee that makes a contribution during the period covered by the
report together with the date and amount of the contribution.
c. Person who makes a loan during the period covered by the report, together with the
identification of any endorser or guarantor of the loan and the amount endorsed or
guaranteed by each, and the date and amount of the loan.
d. Person who provides any rebate, refund or other offset to operating expenditures
during the period covered by the report together with the date and amount of the
receipt.
Important Note:
Making Expenditures
No expenditure may be made for or on behalf of a committee without the authorization of the
treasurer or his designated agent.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 35
e. Person who provides a dividend, interest or other receipt during the period covered
by the report, together with the date and amount of the receipt.
4. For the reporting period and the election, the total amount of all disbursements and an
itemized list of all disbursements in the following categories together with the total of all
disbursements in each category:
a. Expenditures, other than a contract, promise or agreement to make an expenditure
resulting in an extension of credit, made to meet committee operating expenses.
b. Transfers to other political committees.
c. For a candidate's campaign committee, the repayment of loans made or guaranteed
by the candidate.
d. Repayment of all other loans.
e. Refunds of contributions received and other offsets to contributions.
f. Loans made by the reporting political committee.
g. The value of in-kind contributions received.
h. Independent expenditures.
i. Any other disbursements.
5. The name and address of each recipient of an expenditure made during the period covered
by the report and the date, amount of the expenditure and a clear description of the items or
services purchased.
6. An itemized account of the campaign debts and extensions of credit that are owed by the
candidate or political committee and that remain outstanding, including the name and
address of the obligee or creditor, the amount owed, whether the amount is certain or
estimated and on what basis, and the purpose of the obligation. An obligation that is
itemized on a campaign finance report shall be listed on all subsequent finance reports until
extinguished.
7. The total sum of all receipts, together with the total receipts less offsets, and the total sum of
all disbursements, together with the total disbursements less offsets, for both the period
covered by the report and the election.
III. Expenditures Reported in a Campaign Finance Report
A campaign finance report must include all expenditures made by the committee through the end of
the reporting period. It is the candidate’s responsibility to ensure that all expenditures are entered in
the campaign finance software. Entering campaign expenditures into the software on a daily basis is
a crucial component of complying with campaign finance law. It is the candidate’s responsibility to
communicate to staff the importance of turning in receipts so that the campaign can remain in
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 36
compliance with the campaign finance law. Each expenditure reported in a campaign finance report
shall include a description of the goods and services that were purchased. The campaign finance
software provides a space for the user to enter a description for each expenditure.
Reporting Debt
The definition of “expenditure” includes campaign debt and extensions of credit. Debt is incurred
by a candidate when the promise, contract or agreement to make an expenditure occurs. For
example, if a candidate places an order for campaign signs that is payable upon delivery, the moment
the candidate places the order, the candidate has incurred a debt.
The campaign finance software contains a specific section for outstanding debt to be entered. If the
exact level of debt is unknown, it shall be estimated. Each campaign finance report must include an
itemized account of the campaign debts and extensions of credit that are owed by the candidate and
that remain outstanding. The campaign finance report must include the name and address of the
obligee or creditor, the amount owed, whether the amount is certain or estimated and on what basis,
and the purpose of the obligation. An obligation that is itemized on a campaign finance report shall
be listed on all subsequent finance reports until extinguished. Debt and extensions of credit must be
reported continuously until paid.
*Exception: Regularly recurring administrative expenses such as rent, utilities and salaries are NOT
considered to be debts until the payments are past due.
Using a Personal Credit Card
The treasurer shall instruct campaign workers on the need to arrange for advances for travel
expenses or to request a campaign check to purchase goods or services for the campaign.
If someone uses a personal credit card on behalf of a campaign, the expenditure is incurred
immediately upon use, not when the bill is received. Until such time that the campaign reimburses
the individual who used the credit card, the amount is considered to be an in-kind contribution.
When the person who used the credit card is reimbursed, the treasurer shall include on the campaign
finance report the full name and street address of the person, and the nature of the goods and
services for which payment has been made.
Petty Cash Accounts
A candidate’s campaign committee may establish one or more petty cash accounts. On a campaign
finance report, the treasurer shall identify the name and address of the person who withdrew the
cash, the date, the amount of cash withdrawn, and a memo stating “petty cash.”
Expenditures made with petty cash do not need to be itemized on a campaign finance report;
however, the treasurer shall maintain a detailed record of all expenditures that are made with petty
cash.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 37
Refund & Repayment
If a candidate receives a refund from an expenditure (for example, the candidate returned
merchandise to the store), the original expenditure and the refunded amount must be reported. The
campaign software includes a specific section to report refunds.
A loan repayment is NOT an expenditure. The campaign finance software contains a specific
section to enter in loan repayments.
A refund of a contribution is NOT an expenditure. The campaign finance software contains a
specific section to enter in contribution refunds.
Important Notes:
Reporting Expenditures
• Any outlay of cash, the writing of a personal check or the use of a credit card by a staff
member or consultant for which the staff member or consultant will be reimbursed is
considered to be an expenditure on the day the cash, check, or credit card is used, NOT when
the person is reimbursed.
• If the campaign orders any service or good, and either knows the cost of that good or service,
or can make a reasonable estimate of that service or good, the expenditure must be reported
in the reporting period that includes the date that the campaign orders the service (for
example, if a campaign knows the per copy cost of printing, and orders 100,000 copies, it
must report the expenditure in the reporting period that includes the date it orders the
copies—even if an invoice is received later).
• Recurring services such as telephone service, cell phone service, utility service, and rent,
become reportable expenditures the date that the campaign (or consultant or staff, if a staff
member or consultant will pay the bill and be reimbursed) receives the bill as long as the bill is
sent using the same billing procedures for its other customers.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 38
Summary
􀂙􉥁 A campaign finance report filed by a candidate must include all expenditures made by the
committee through the end of the reporting period. This includes any outstanding debt.
􀂙􉥏 Outstanding debt is incurred whenever a promise, contract or agreement to make an
expenditure occurs.
􀂙􉥁 An expenditure made with a credit card is incurred immediately upon use, NOT when the
bill is received.
References
􀂙􉥄 Definition of expenditure
• A.R.S. § 16-901(8)
􀂙􉥃 Contents of campaign finance reports
• A.R.S. § 16-915
􀂙􉥐 Petty cash accounts
• A.R.S. § 16-948(C)
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 39
The Commission sponsors debates for candidates in both the primary and general election
periods. Nonparticipating candidates are encouraged to participate in the debates. The
Commission mails a candidate statement pamphlet to each household in Arizona with a
registered voter. All candidates are given the opportunity to submit a statement and a
photograph to be included in the pamphlets.
I. Debates
The Commission sponsors debates among candidates in both the primary election period and the
general election period. Participating candidates are required to attend and participate in debates.
The Commission also invites and encourages nonparticipating candidates to participate in debates.
The Commission chooses sponsors and ensures the debates are carried out in a strictly nonpartisan
and professional manner. The Commission will be considered a “co-sponsor” of the debates for
advertising purposes; however, the “sponsoring organization” will make all debate arrangements,
including dates, times, locations, media coverage, format and ground rules.
Participation
Nonparticipating candidates are invited and encouraged to participate in debates. Candidates invited
to participate in the debates will be limited to those candidates who will appear on the primary or
general election ballots. All candidates must appear in person, not by proxy or electronically, unless
to accommodate a disability. One debate will be held in the primary election period and one debate
will be held in the general election period, circumstances permitting.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 40
II. Candidate Statement Pamphlets
The Commission will produce primary and general election candidate statement pamphlets for the
2004 elections. The Commission will produce and mail candidate statement pamphlets to every
household in Arizona that has a registered voter before the start of early voting for both the primary
and general elections.
Nonparticipating candidates may supply the Commission with a statement and photograph for
inclusion in the pamphlets. All candidates who will appear on either the primary or general election
ballot may submit a statement by the deadline. The pamphlets will include the office in which the
candidate is running, as well as the candidate’s name, party affiliation, funding source, web address
and statement. Candidates will be allowed to submit separate statements for the primary and general
election pamphlets.
Submission Deadlines
The Commission will not accept late submissions for inclusion in the pamphlets. Primary election
statements and photographs shall be submitted no later than 5:00pm on June 9, 2004 for inclusion
in the primary election pamphlet. General election statements and photographs shall be submitted
no later than 5:00pm on July 27, 2004.
Statements
The 2004 pamphlets will include statements of 200 words in length. The Commission will allow
candidates to submit separate statements for the primary and general election pamphlets. New
statements will be accepted for the general election pamphlet. If a statement is not submitted for
the primary election pamphlet, and a candidate wins the primary election, the candidate may submit
a statement for the general election pamphlet. If a candidate submits a statement for the primary
election pamphlet and does not submit a new statement for the general election pamphlet, the
statement from the primary election pamphlet will be used for the general election pamphlet.
The Commission will only accept statements electronically through the Commission’s website.
Statements that exceed the allotted 200 words will be NOT be accepted.
Photographs
The 2004 pamphlets will include photographs of candidates. A statement can be submitted without
having submitted a photograph, or vice versa. The Commission will accept digital photos only.
Candidates can submit digital photos through the Commission website, by e-mail or candidates can
make an appointment to have a digital photo taken at the Commission’s graphic design firm. If a
candidate submits a photo for inclusion in the primary election pamphlet, the same photo will be
used for the general election pamphlet. Photos for inclusion in the general election pamphlet will
only be accepted from candidates who did not submit a photo for inclusion in the primary election
pamphlet.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 41
Submission Process
• Submit the statement and photo online at www.ccec.state.az.us. After the statement and photo
are submitted, a verification form will appear.
• Print out and review the verification form for submission to the Commission.
• Sign and date the verification form and make a copy of the verification form for candidate
records.
• Fax the verification form or mail the verification form to the Commission immediately after the
statement is submitted.
• The Commission will receive the verification form and enter the statement and photo into the
pamphlets.
All statements will appear in the pamphlets exactly as they are submitted. The Commission will not
permit changes to statements after the final verification form has been returned.
Upon request, the Commission will offer the use of an internal, public computer should candidates
need to utilize these facilities in order to submit statements. This computer will be housed at the
Commission’s office.
Please visit the Commission’s website at www.ccec.state.az.us for detailed instructions on how to
submit a statement and photograph.
Format and Availability
The pamphlets will be available in English/Spanish and large-type print. The Commission will
distribute additional copies of the pamphlets to the Secretary of State’s Office, the 15 county
election offices, political parties, and libraries.
For the primary election, the pamphlets will be mailed to households no later than August 5, 2004.
For the general election, the pamphlets will be mailed no later than September 30, 2004.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 42
Summary
􀂙􉥔 The Commission sponsors debates that are administered by sponsoring organizations that
make all debate arrangements, including dates, times, locations, media coverage, format and
ground rules.
􀂙􉥎 Nonparticipating candidates are invited and encouraged to participate in the debates.
􀂙􉥔 The Commission mails Candidate Statement Pamphlets to each household in Arizona with a
registered voter.
􀂙􉥁 All candidates who are qualified for the ballot are invited to submit a statement and a
photograph to be included in the Candidate Statement Pamphlets.
􀂙􉥄 Detailed instructions regarding how to submit a statement and photograph are available on
the Commission’s website at www.ccec.state.az.us.
References
􀂙􉥃 Commission is responsible for sponsoring debates
• A.R.S. § 16-956(A)(2)
• A.A.C. R2-20-107(A)
􀂙􉥃 Commission is responsible for producing and mailing candidate statement pamphlets
• A.R.S. § 16-956(A)(1)
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 43
A person or group may make an independent expenditure to advocate the election or defeat of
a candidate or candidates. Those who make independent expenditures must register with the
Secretary of State and must file campaign finance reports whenever certain triggering thresholds
are met and exceeded. Participating candidates may receive matching funds for independent
expenditures that are made against them or in favor of their opponents.
I. Filing an Independent Expenditure Committee
A person or group who wants to make independent expenditures cumulatively exceeding $500 is
required to file a statement of organization with the Secretary of State before receiving contributions
or making expenditures. Once registered with the Secretary of State, the person is held to all
campaign finance laws and reporting requirements. The Secretary of State will provide the person
with a copy of the campaign finance software, which shall be used to electronically file all campaign
finance reports.
A person or group who wants to make independent expenditures that cumulatively do NOT exceed
$500 must file a $500 threshold exemption statement with the Secretary of State.
II. Definition of Independent Expenditure
An independent expenditure is an expenditure by a person or political committee, other than a
candidate's campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, that is made without cooperation or consultation with any candidate or
committee or agent of the candidate and that is not made in concert with or at the request or
suggestion of a candidate, or any committee or agent of the candidate.
III. Definition of Express Advocacy
1. Conveying a communication containing a phrase such as "vote for," "elect," "re-elect,"
"support," "endorse," "cast your ballot for," "(name of candidate) in (year)," "(name of
candidate) for (office)," "vote against," "defeat," "reject," or a campaign slogan or words that in
context can have no reasonable meaning other than to advocate the election or defeat of one or
more clearly identified candidates; or
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 44
2. Making a general public communication, such as in a broadcast medium, newspaper, magazine,
billboard, or direct mailer referring to one or more clearly identified candidates and targeted to
the electorate of that candidate(s):
• That in context can have no reasonable meaning other than to advocate the election
or defeat of the candidate(s), as evidenced by factors such as the presentation of the
candidate(s) in a favorable or unfavorable light, the targeting, placement, or timing of
the communication, or the inclusion of statements of the candidate(s) or opponents;
or
• In the sixteen-week period immediately preceding a general election.
3. A general public communication shall not be considered as one that "expressly advocates"
merely because it presents information about the voting record or position on a campaign issue
of three or more candidates, so long as it is not made in coordination with a candidate, political
party, agent of the candidate or party, or a person who is coordinating with a candidate or
candidate's agent.
Express Advocacy v. Issue Advocacy
The Commission shall consider whether the communication expressly advocates the election or
defeat of a clearly identified candidate, and whether or not it was made in concert with a candidate.
In determining if a communication expressly advocates the election or defeat of a candidate, rather
than advocating an issue, the Commission will review the following 3 components.
1. Even if it is not presented in the clearest, most explicit language, speech is "express" if its
message is unmistakable, unambiguous, and suggestive of only one plausible meaning.
2. Speech may only be termed "advocacy" if it presents a clear plea for action, and thus speech
that is merely informative is not covered by the Act.
3. It must be clear what action is advocated. Speech cannot be "express advocacy of the
election or defeat of a clearly identified candidate" when reasonable minds could differ as to
whether it encourages a vote for or against a candidate or encourages the reader to make
some other kind of action. If any reasonable alternative reading of speech can be suggested,
it cannot be express advocacy subject to the Act's disclosure requirements.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 45
IV. What is NOT Considered to be an Independent Expenditure
An expenditure by a political committee or a person that does not meet the definition of an
independent expenditure is considered to be an in-kind contribution to the candidate, and a
corresponding expenditure by the candidate, unless otherwise exempted. An expenditure is NOT
an independent expenditure if any of the following applies:
• Any officer, member, employee or agent of the political committee making the expenditure
is also an officer, member, employee or agent of the committee of the candidate whose
election or whose opponent's defeat is being advocated by the expenditure or an agent of the
candidate whose election or whose opponent's defeat is being advocated by the expenditure.
• There is any arrangement, coordination or direction with respect to the expenditure between
the candidate or the candidate's agent and the person making the expenditure, including any
officer, director, employee or agent of that person.
• In the same election the person making the expenditure, including any officer, director,
employee or agent of that person, is or has been:
(i) Authorized to raise or expend monies on behalf of the candidate or the candidate's
authorized committees.
(ii) Receiving any form of compensation or reimbursement from the candidate, the
candidate's committees or the candidate's agent.
• The expenditure is based on information about the candidate’s plans, projects or needs, or
those of his campaign committee, provided to the expending person by the candidate or by
the candidate’s agents or any officer, member or employee of the candidate’s campaign
committee with a view toward having the expenditure made.
Exceptions for Certain Organizations
Certain organizations are permitted by law to make expenditures that will not be considered to be
political contributions to a candidate or an independent expenditure:
1. Communications by a corporation to its stockholders and executive or administrative
personnel and their families, or by a labor organization to its members and their families, on
any subject.
2. Nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its
stockholders and executive or administrative personnel and their families or by a labor
organization aimed at its members and their families.
3. The establishment, administration and solicitation of voluntary contributions to a separate
segregated fund to be utilized for political purposes by a corporation, labor organization,
membership organization, trade association, cooperative or corporation without capital
stock.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 46
4. The establishment, administration and solicitation of voluntary contributions from
employees of a corporation or limited liability company, including contributions made by
payroll deduction, deposit or transfer or other similar method, and that are made directly to
a separate segregated fund that is used for political purposes by a trade association of which
the employing corporation or limited liability company is a member.
5. Contributions for use to support or oppose an initiative or referendum measure or
amendment to the constitution.
6. A membership organization, trade association, cooperative or corporation without capital
stock may engage in the activities permitted in paragraphs 1 and 2 of this section if such
activities are directed toward its members, stockholders or members of its members, its and
its members' executive or administrative personnel, and their families.
V. Independent Expenditure Trigger Reporting Dates
A person making an independent expenditure is required to file campaign finance reports whenever
certain expenditure thresholds are reached. Any person that makes independent expenditures
cumulatively exceeding $550 in an election cycle is required to file an original campaign finance
report by the next due date listed in the chart below. A supplemental campaign finance report must
be filed by the next due date when previously unreported independent expenditures exceed $1,000.
Below is a chart of original and supplemental trigger reporting dates. When a person making an
independent expenditure reaches a trigger threshold, the person is required to file a campaign
finance report by the next due date listed in the chart. Each independent expenditure reported must
include a designation of the office and the candidate(s) whose election or defeat is being advocated,
and whether the independent expenditure advocates the election or the defeat of the candidate(s).
The campaign finance software provides designated areas to enter the required information.
INDEPENDENT EXPENDITURE
2004 TRIGGER REPORTING DATES
January 1
February 1
March 1
April 1
May 1
June 1
July 1, 6, 13, 20, 27
August 3, 10, 17, 24, 25, 26, 27, 30, 31
September 1, 2, 3, 7, 8, 14, 21, 28
October 5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
November 1, 2, 3
December none
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 47
VI. Matching Funds for Participating Candidates
The Commission will provide matching funding to participating candidates affected by independent
expenditures. Participating candidates may receive matching funding for independent expenditures
made against them or in favor of opposing candidates. However, the total monies distributed to a
candidate during an election period will not exceed three times the original election spending limit.
The following expenditures shall be treated as follows when calculating matching funds:
• Independent expenditures against a participating candidate shall be treated as expenditures
of each opposing candidate in the primary election period, or contributions to each opposing
candidate in the general election period.
• Independent expenditures in favor of one or more nonparticipating opponents of a
participating candidate shall be treated as expenditures of those nonparticipating candidates
in the primary election period or contributions to those nonparticipating candidates in the
general election period.
• Independent expenditures in favor of a participating candidate shall be treated, for every
opposing participating candidate, as though the independent expenditures were an
expenditure of a nonparticipating opponent in the primary election period, or a contribution
to a nonparticipating opponent in the general election period.
For further details regarding matching funds calculations, refer to the primary and general elections
matching funds explanations in chapter 4.
Process of Providing Matching Funds
1. The Commission receives notification from the Secretary of State’s Office whenever persons
making independent expenditures file a campaign finance report. The Commission has the
authority to provide matching funds based on information gathered from a campaign
finance report or from other information that comes to the Commission’s attention.
Therefore, if a person fails to report activity but the Commission is aware that independent
expenditures have been made, the Commission may estimate the value of a known
expenditure and provide matching funds to participating candidates.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 48
Summary
􀂙􉥐 Persons or groups who want to make independent expenditures cumulatively exceeding
$500 must first file a statement of organization with the Secretary of State. Persons or
groups who want to make independent expenditures that cumulatively do not exceed $500
must file a $500 threshold exemption statement with the Secretary of State.
􀂙􉥁 An independent expenditure is an expenditure that is made without cooperation or
consultation with the candidate whose election or defeat is being expressly advocated.
􀂙􉥐 Persons making independent expenditures must file campaign finance reports when certain
expenditure thresholds are met and exceeded.
􀂙􉥐 Participating candidates may receive matching funds for independent expenditures that are
made against them or in favor of their opponents.
References
􀂙􉥒 Registration of independent expenditure committees
• A.R.S. § 16-902.01
􀂙􉥄 Definition of independent expenditure
• A.R.S. § 16-901(14)
􀂙􉥄 Definition of express advocacy
• A.R.S. § 16-901.01
􀂙􉥐 Permitted expenditures by corporation and labor organizations
• A.R.S. § 16-920
􀂙􉥔 Trigger reporting levels and dates
• A.R.S. § 16-941(D)
• A.R.S. § 16-958
􀂙􉥍 Matching funds calculations
• A.R.S. § 16-952
• A.A.C. R2-20-113
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 49
After an election, a candidate may terminate his committee by filing a termination statement
with the Secretary of State. All office holders may establish a separate account to raise and
spend monies for officeholder related expenses.
I. Terminating the Campaign Committee
A candidate may terminate his or her political committee by having the committee chairman and
treasurer file a termination statement with the Secretary of State. The chairman and treasurer certify
that the committee will no longer receive any contributions or make any disbursements, that the
committee has no outstanding debts or obligations, and that any surplus monies have been disposed
of properly.
The Secretary of State requires the committee to file a campaign finance report showing a zero
account balance before the committee can officially be terminated.
II. Officeholder Expenses
Current officeholders, both participating and nonparticipating, are permitted to raise and spend
money to pay for officeholder related expenses. The intent of the officeholder expenses rule is to
allow participating candidates to raise money to spend on office related needs and to help prevent
nonparticipating candidates from triggering matching funds for their opponents in future elections.
Failure to register an officeholder expenses committee may cause participating candidates to
inadvertently exceed their next election cycle early contribution limits and nonparticipating
candidates to inadvertently trigger matching funds for their opponents.
Spending Limits
Prior to April 30 of the election year for that office, an elected official may raise or spend money to
defray the expense of performing officeholder duties.
• The candidate may exhaust all surplus monies from prior campaign accounts or may use
personal monies for officeholder expenses.
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 50
• Money raised shall be only from individuals and the maximum raised from an individual
during the election cycle shall not exceed $110.
• The sum of the money raised or spent shall not exceed two times the early contribution limit
applicable to the officeholder’s current office. The chart below lists the limits for each
office:
2004 OFFICEHOLDER EXPENSES LIMITS
Legislature $5,660
Governor $88,280
Secretary of State $45,280
Attorney General $45,280
Treasurer $22,640
Superintendent of Public Instruction $22,640
Corporation Commission $22,640
Mine Inspector $11,320
Officeholder Expense Account
Before making any expenditures or raising any monies for the officeholder expense account, the
officeholder must file a statement of organization with the Secretary of State with the designation
“Officeholder Expense Account.” The account shall be separate from any candidate campaign
account. All activity related to officeholder expenses are deemed reportable. The officeholder must
file all period campaign finance reports, until such time that the account has been terminated with
the Secretary of State. Any money remaining in the officeholder expense account after April 30 of
an election year shall either not be spent for the remainder of the calendar year, or shall be remitted
to the Fund.
Time Limit
Officeholder expenses money must be raised, spent, and the benefit from the expenditure received
by April 30 of the election year. Any expenditure made after April 30 will be considered to be a
regular campaign expenditure. For current legislative officeholders, the cutoff date is April 30, 2004.
For current statewide officeholders, the cutoff date is April 30 of their respective re-election year.
Permissible Expenditures
Money in the officeholder expense account CANNOT not be used for direct campaign purposes or
in connection with the officeholder’s future campaign for elective office.
Permissible uses of the money in the officeholder expense account include:
• Expenditures for office equipment and supplies.
• Expenditures for work-related travel.
• Donations to tax-exempt charitable organizations.
• Expenditures to meet or communicate with constituents.
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 51
Summary
􀂙􉥉 In order to terminate the candidate committee, the candidate must file a termination
statement with the Secretary of State and must file a campaign finance report showing a zero
account balance.
􀂙􉥃 Current officeholders may raise and spend monies for officeholder related expenses. A
separate account must be established with the Secretary of State.
References
􀂙􉥔 Terminating the campaign committee
• A.R.S. § 16-914(A)
􀂙􉥏 Officeholder expenses
• A.A.C. R2-20-104(F)
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 52
The Commission is charged with the responsibility of enforcing the Clean Elections Act and
has the authority to impose civil penalties. The Commission may initiate an enforcement action
based on staff analysis, or the Commission may receive a written complaint from a member of
the public. The Commission also has the authority to conduct financial audits on all
candidates’ campaign accounts.
I. Enforcement Procedures
Externally Generated
Any person may file a complaint against a candidate if he or she believes a violation of the
Commission Act or Rules has occurred or is about to occur. The complaint must be made in
writing, and the signature of the complainant must be notarized. The Commission will NOT accept
verbal or anonymous complaints. A compliant complaint must:
• Provide the full name and address of the person filing the complaint (“complainant”);
• Be signed, sworn to and notarized by a notary public;
• Clearly identify each person, committee or group that is alleged to have committed a
violation (“respondent”);
• Clearly recite the facts showing specific violations under the Commission’s jurisdiction;
• Include any documentation supporting the allegations; and
• Differentiate between statements based on the complainant’s personal knowledge and
those based on information from others.
If the complaint is in compliance with the above listed requirements, the Commission will assign it a
Matter Under Review (MUR) number, send an acknowledgement to the complainant and send a
copy of the complaint to the respondent. If the complaint does not comply with the above listed
requirements, the Commission shall notify the complainant and the complainant may resubmit his
or her complaint.
Internally Generated
The Commission staff, in its review of campaign finance reports, or otherwise, may initiate an
internally generated complaint against a candidate. The complaint is handled in an identical manner
to an externally generated complaint, with the Commission acting as the complainant.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 53
Respondent’s Opportunity to Respond to a Complaint
Within 5 days after receiving a complaint, the Commission will send a copy of the complaint to the
respondent. Upon receipt, the respondent has 5 days to provide the Commission with a written
response.
After the 5-day response period, the Executive Director will evaluate the matter to determine
whether there is reason to believe that a violation has occurred. The Executive Director has the
authority to dismiss frivolous and erroneous complaints without them being presented to the
Commission.
Reason to Believe Recommendation
The Executive Director will review the written complaint, the respondent’s written response,
campaign finance reports and any supporting documentation provided by the complainant and
respondent. A full-fledged investigation of the matter will not begin unless the Commission finds
reason to believe a violation has occurred.
The Executive Director shall make a recommendation to the Commission at a public Commission
meeting whether or not there is reason to believe a violation has occurred. If the Commission
decides that there is no reason to believe a violation has occurred, the matter will be closed and both
parties will be notified in writing. If at least 3 of the 5 commissioners find that there is reason to
believe a violation has occurred, the Commission staff will open an investigation into the matter.
Investigation
If the Commission finds that there is reason to believe that a violation has occurred, the
Commission shall serve on that person an order stating with reasonable particularity the nature of
the violation and requiring compliance within 14 days. During that period, the respondent may
provide an explanation to the Commission, comply with the order, or enter into a public
administrative settlement with the Commission. Also, during the 14-day period, the Commission
may perform additional investigative work and will consider any additional explanation provided by
the respondent. The Commission investigation may include field investigations, audits and other
methods of information gathering. The Commission may also issue subpoenas and orders requiring
persons to answer written questions.
Probable Cause to Believe Recommendation
Upon expiration of the 14 days and the investigation, the Executive Director will prepare a probable
cause to believe recommendation stating his or her recommendation on whether there is probable
cause to believe that a violation has occurred. The Executive Director’s recommendation will be
sent to the respondent and the respondent will have 10 days to respond, in writing, to the
recommendation. After reviewing the respondent’s response (if any), the Executive Director will
prepare a final recommendation to the Commission.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 54
The Executive Director will present the probable cause to believe recommendation to the
Commission at a public meeting. If the Commission finds that there is probable cause to believe a
violation has occurred, the Commission shall make a public finding to that effect and issue an order
assessing a civil penalty, unless the Commission publishes findings of fact and conclusions of law
expressing good cause for reducing or excusing the penalty. If the Commission finds no probable
cause, the complaint shall be terminated and both the respondent and complainant will be notified
in writing.
Any candidate in a particular election contest who believes that any opposing candidate has violated
the Act for that election may file a complaint with the Commission requesting that action be taken.
If the Commission fails to make a “reason to believe” finding within 30 days after the filing of such
a complaint, the candidate may bring a civil action in the superior court to impose the civil penalties
prescribed by the Act.
Administrative Settlement
At any time during a complaint process, the respondent may choose to enter into a settlement
agreement with the Commission. A settlement agreement is not binding until it is approved by the
Commission and it is signed by the Executive Director and the respondent.
Administrative Hearing
If the Commission finds probable cause and issues an order and notice of penalties requiring
compliance, the respondent may file a request for an administrative hearing with the Office of
Administrative Hearings (OAH). The respondent must file the request for a hearing with the
Commission within 30 days of receipt of the order and notice of penalties. OAH is a state agency
that provides the opportunity for an impartial hearing administered by an Administrative Law Judge.
After the hearing, the Administrative Law Judge will issue a recommendation to the Commission,
which the Commission will consider at its next public meeting. The Commission may choose to
adopt the Administrative Law Judge’s recommendation or may choose to retain the Commission’s
original decision.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 55
II. Penalties
The Commission has the authority to assess civil penalties on both participating and
nonparticipating candidates. Certain penalties are prescribed in statute. For other violations, the
Commission may impose a penalty as it deems fit. No civil penalty negotiated by the Commission
or imposed by a court may exceed the greater of $10,000 or an amount equal to any contribution or
expenditure involved in the violation. In the case of a knowing and willful violation, the civil penalty
may not exceed the greater of $15,000 or an amount equal to 200% of any contribution or
expenditure involved in the violation. All civil penalties collected by the Commission are deposited
into the Clean Elections Fund.
Nonparticipating Candidates
1. The civil penalty for a violation by or on behalf of any candidate of any reporting requirement
shall be:
• $110 per day for candidates for the legislature; and
• $330 per day for candidates for statewide office.
The penalty imposed shall be doubled if the amount not reported for a particular election
cycle exceeds 10% of the adjusted primary or general election spending limit. No penalty
imposed shall exceed twice the amount of expenditures or contributions not reported. The
candidate and the candidate's campaign account shall be jointly and severally responsible for
any penalty imposed.
2. Any campaign finance report filed indicating a violation of the contribution or spending limits
involving an amount in excess of 10% of the sum of the adjusted primary election spending
limit and the adjusted general election spending limit for a particular candidate shall result in
disqualification of a candidate or forfeiture of office.
III. Audits
The Commission has the authority to conduct audits of all candidates. The Commission will
typically initiate an audit to aid in the investigation of an enforcement action, however the
Commission may initiate an audit at any time it deems necessary. The Commission also conducts
random audits throughout the election cycle of both participating and nonparticipating candidates.
For the 2003-2004 election cycle, the Commission will randomly select 10 candidates to be audited
after the Pre-Primary and after the Post-Primary campaign finance reports are filed.
The Commission contracts with an independent accounting firm to conduct all auditing work.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 56
Audit Procedure
If a candidate is selected for an audit, the Commission will notify the candidate and the accounting
firm in writing. The accounting firm will contact the candidate to explain the auditing process and
to set up an appointment for an entrance interview. The auditors will conduct all fieldwork at a site
provided by the candidate. The candidate must make all books and records available to the auditors
and must have personnel familiar with the records available to answer questions.
Preliminary Audit Report
After completion of the fieldwork, the auditors may prepare a written preliminary audit report. If
the auditors cannot complete a preliminary audit report, the candidate shall be notified in writing.
The preliminary audit report will include:
• An evaluation of procedures and systems employed by the candidate to comply with the Act
and rules;
• The accuracy of statements and campaign finance reports filed with the Secretary of State;
and
• Preliminary findings.
The preliminary audit report will be presented to the Commission at a public meeting, and if the
Commission approves the preliminary audit report, it will be provided to the candidate. Upon
receipt of the Commission approved preliminary audit report, the candidate has 10 days to submit
written comments to the Commission.
Final Audit Report
Taking in consideration any written comments provided by the candidate, the auditors will provide
the Commission with a final audit report at a public meeting. The final audit report may include the
identification of issues that warrant referral for possible enforcement proceedings. At the public
meeting, the Commission will vote to approve the final audit report. The candidate will be provided
with the final audit report at least 24 hours before the public meeting. Following Commission
approval of the final audit report, it will be sent to the candidate within 5 days after the public
meeting.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 57
Summary
􀂙􉥔 The Commission may initiate an enforcement procedure based on a written complaint filed
by a member of the public or based on a Commission staff recommendation.
􀂙􉥔 The Commission has the authority to assess civil penalties on both participating and
nonparticipating candidates. Penalties are set forth in statute and in Commission rule.
􀂙􉥔 The Commission has the authority to conduct audits of all candidates. The Commission
uses an accounting firm to conduct all auditing work.
References
􀂙􉥃 Compliance and enforcement procedures
• A.A.C. R2-20-201 through -228
􀂙􉥄 Delivery of subpoenas
• A.A.C. R2-20-103(G) & (H)
􀂙􉥁 Administrative hearing
• A.A.C. R2-20-224
􀂙􉥍 Maximum civil penalties
• A.A.C. R2-20-222
􀂙􉥃 Civil penalties for participating candidates
• A.R.S. § 16-942
􀂙􉥃 Civil penalties for nonparticipating candidates
• A.R.S. § 16-942(B) & (C)
􀂙􉥁 Authority to audit all candidates
• A.R.S § 16-956(B)
􀂙􉥁 Auditing procedures
• A.A.C. R2-20-401 through -406
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 58
Adjusted Spending Limit: The original spending limit as further adjusted to account for reported
overages by nonparticipating candidates or independent expenditures.
Candidate’s Campaign Committee: A political committee designated and authorized by a
candidate. A candidate campaign committee may have only one member: the candidate.
CCEC: Citizens Clean Elections Commission acronym.
Citizens Clean Elections Fund: The account through which participating candidates receive
public funds.
Contribution: Anything of value, including gifts, loans, in-kind contributions, advances or deposits
of money, made for the purpose of influencing an election.
Includes any of the following:
• A contribution made to retire campaign debt.
• Money or the fair market value of anything directly or indirectly given or loaned to an elected
official for the purposes of defraying the expense of communications with constituents,
regardless of whether the elected official has declared his or her candidacy.
• The entire amount paid to a political committee to attend a fund-raising or other political
event and the entire amount paid to a political committee as the purchase price for a fund-raising
meal or item. However, it is not considered to be a contribution if the actual cost of
the meal or fund-raising item is for the purchaser’s personal use and not for resale, and the
actual cost is the entire amount paid by the purchaser in connection with the event. The
exception does not apply to auction items.
• Unless specifically exempted, the provision of goods or services without charge or at a
charge that is less than the usual and normal charge for such goods and services.
[A.R.S. § 16-901(5)(a)(i-iv)]
Does not include any of the following:
• The value of services provided without compensation by any individual who volunteers on
behalf of a candidate, a candidate’s campaign committee or any other political committee.
• Money or the value of anything directly or indirectly provided to defray the expense of an
elected official meeting with constituents if the elected official is engaged in the performance
of the duties of his or her office or provided by the state or a political subdivision to an
elected official for communication with constituents if the elected official is engaged in the
performance of the duties of his or her office.
• An individual may use personal property, including their home, a church or community
room used on a regular basis by members of a community for noncommercial purposes, in
the course of volunteering for a candidate. Each adult in the household may contribute up
to $100 in value for invitations, food and beverages only. This does not count as a
contribution to the candidate. Any amount over $100, or for any other purpose, will need to
be reported as a contribution from the individual and is subject to individual contribution
limits.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 59
• Any reimbursed payment for personal travel expenses made by an individual who, on his or
her own behalf, volunteers his or her personal services to a candidate.
• The payment by a political party for printing and postage expenses for slate cards, sample
ballots, and other written materials that substantially promote three or more nominees of the
party for public office. This exemption does not apply if costs are for a display of the listing
of candidates made on telecommunications systems or in newspapers, magazines or similar
types of general circulation advertising.
• Independent expenditures.
• Monies loaned by a state bank, a federally chartered depository institution or a depository
institution. In order for this exemption to apply, this loan shall be deemed a loan by each
endorser or guarantor, in that proportion of the unpaid balance that each endorser or
guarantor bears to the total number of endorsers or guarantors, the loan shall be made on a
basis that assures repayment, evidenced by a written instrument, shall be subject to a due
date or amortization schedule and shall bear the usual and customary interest rate of the
lending institution.
• Legal or accounting services provided to a candidate at no cost. This exemption only applies
if the only person paying for the services is the regular employer of the person rendering the
services and if services are solely for the purpose of compliance with this title.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the party
in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political advertising.
• A transfer between campaigns to distribute monies raised through a joint fund-raising effort
in which each candidate pays a proportionate share of the fundraising expenses and receives
a proportionate share of the funds that are raised.
• An extension of credit for goods and services made in the ordinary course of the vendor's
business. This applies only if the vendor provides similar terms of credit to other
nonpolitical customers and makes a reasonable attempt to collect the debt. If the candidate
does not pay the debt after 6 months, it shall be deemed receipt of a contribution by the
candidate but not a contribution by the creditor.
• Interest or dividends earned by a political committee on any bank accounts, deposits or
other investments of the political committee.
• Expenditures made in accordance with the Officeholder Expense Rule.
[A.R.S. § 16-901(5)(b)(i-xiii)]
Expenditure: An expenditure is defined as:
• Any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of
value made by a person for the purpose of influencing an election in this state.
• A contract, promise or agreement to make an expenditure resulting in an extension of credit.
• The value of any in-kind contribution received.
[A.R.S. § 16-901(8)]
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 60
Does not include any of the following:
• A news story, commentary or editorial distributed through any telecommunications system,
newspaper, magazine or other periodical publication. This exemption does not apply if the
publications’ facilities are owned or controlled by a political committee, political party or
candidate.
• Nonpartisan activity designed to encourage individuals to vote or to register to vote.
• The payment by a political party of the costs of preparation, display, mailing or other
distribution incurred by the party with respect to any printed slate card, sample ballot or
other printed listing of three or more candidates for any elective office. This exemption
does not apply if the display of candidates is made on any telecommunications system or in
newspapers, magazines or similar types of general public political advertising.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the party
in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political advertising.
• Any deposit or other payment filed with the Secretary of State or any other similar officer to
pay any portion of the cost of printing an argument in a publicity pamphlet advocating or
opposing a ballot measure.
[A.R.S. § 16-901(8)]
Election Cycle: The period between successive general elections for a particular office.
Exploratory Period: The period beginning on the day after a general election and ending the day
before the start of the qualifying period. For the 2004 election cycle, the exploratory period starts
November 6, 2002. The exploratory period ends December 31, 2003 for legislative candidates and
July 31, 2003 for Corporation Commission candidates.
Fair Market Value: The amount at which property would change hands between a willing buyer
and a willing seller, neither being under any compulsion to buy or sell and both having reasonable
knowledge of the relevant facts.
Family Contribution: Any contribution that is provided to a candidate's campaign committee by a
parent, grandparent, spouse, child or sibling of the candidate or a parent or spouse of any of those
persons.
Filing Officer: The official filing officer for the Commission is the Secretary of State’s office.
Fund: Citizens Clean Elections Fund; the account through which participating candidates receive
public funds.
General Election Period: The period beginning on the day after primary election day and ending
on general election day. For the 2004 election cycle, the general election period starts September 8,
2004 and ends November 2, 2004.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 61
General Election Spending Limits: The level of funding that participating candidates receive
from the Commission for the General Election Period. See chart on page 22.
Independent Candidate: A candidate who is not affiliated with a party recognized on the ballot.
Independent Expenditure: An expenditure by a person or political committee, other than a
candidate’s campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, and that is made without cooperation or consultation with any candidate,
candidate committee or candidate agent.
In-Kind Contribution: A contribution of goods or services or anything of value that is not a
monetary contribution.
Nonparticipating Candidate: A candidate who does not become certified as a participating
candidate under the Clean Elections Act, and, consequently, does not receive public funding to run
his or her campaign.
One-Party-Dominant Legislative District: A district in which the number of registered voters
registered in the party with the highest number of registered voters exceeds the number of registered
voters registered to each of the other parties by an amount at least as high as 10 percent of the total
number of voters registered in the district. One-party-dominant legislative districts are determined at
the beginning of the qualifying period, or January 1 of an election year.
Original Spending Limit: A limit specified by primary election spending limits and general election
spending limits, or a special amount expressly set for a particular candidate (i.e., unopposed or
independent candidates).
PAC: political action committee acronym.
Participating Candidate: A candidate who becomes certified as participating pursuant to A.R.S. §
16-947, and receives public funding to run his or her campaign.
Personal Monies: Assets to which the candidate has legal right; salary and other earned income
from candidate employment; dividends and proceeds from the sale of stocks or investments; income
from trusts; proceeds of loans obtained that are not contributions; proceeds from legal games of
chance; and family contributions.
Political Committee: A candidate, association or combination of persons organized for the
purpose of influencing the result of any election. This includes political activity advocating the
election or defeat of a candidate for election, an initiative, referendum, recall, measure or
proposition.
Primary Election Period: The nine-week period ending on primary election day. For the 2004
election cycle, the primary election period starts July 6, 2004 and ends September 7, 2004.
Primary Election Spending Limits: The level of funding that participating candidates receive
from the Commission for the Primary Election Period. See Chart, page 21.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 62
Qualifying Period: The period beginning on the first day of August in a year preceding an election
for an election for a statewide office, or on the first day of January of an election year for an election
for legislator, and ending 75 days before the day of the general election. For the 2004 election cycle,
the qualifying period starts for legislative candidates on January 1, 2004 and ends August 19, 2004.
For Corporation Commission candidates, the qualifying period starts August 1, 2003 and ends
August 19, 2004.
Rule: An agency statement that implements, interprets or prescribes law or policy, or describes the
procedure or practice requirements of an agency.
SOS: Secretary of State acronym.
Statewide Office: Those offices that hold control over the entire state, not a certain portion within
the state. Statewide offices include governor, secretary of state, state treasurer, attorney general,
superintendent of public instruction, corporation commissioner and mine inspector.
Substantive Policy Statement (SPS): A written expression informing the general public of an
agency’s current approach to, or opinion of, the requirements of the federal or state constitution or
statute, administrative rule or regulation, or final judgment of a court of competent jurisdiction,
including, where appropriate, the agency’s current practice, procedure or method of action based
upon that approach or opinion. An SPS is advisory only. An SPS does not impose additional
requirements or penalties on regulated parties, confidential information or rules.
Surplus Monies: The remainder of a political committee’s money after all of its expenditures have
been made and its debts have been extinguished.
Unopposed: In the primary election for the House of Representatives, a candidate is unopposed if
there is no more than one other candidate from the same party, and if there is no opposition for the
same office in the general election by an independent or a candidate from another party. In the
primary election for statewide office and Senate, a candidate is unopposed if there are no other
candidates from the same party, and if there is no opposition for the same office in the general
election by an independent or a candidate from another party. In the general election for the House
of Representatives, a candidate is unopposed if there is no more than one other candidate on the
ballot competing for election in the same district. In the general election for statewide offices and
Senate, a candidate is unopposed if there is no opponent on the ballot competing for the same
office.
Citizens Clean Elections Commission Timeline—2003-2004 Election Cycle
Nonparticipating Candidates (Legislative Offices)
Feb. 2
2004
JANUARY 31
Original
Campaign
Finance Report
due to the
Secretary of State
(Feb. 2, 2004)
Period 1 covering
Nov. 26, 2002 to
Dec. 31, 2003
March June June July
1 9 30 6
Secretary of State to
calculate Candidate
signature
requirements
Deadline to file
Nominating
Petitions and
Papers with the
Secretary of State
(June 9, 2004)
JUNE 30
Original Campaign
Finance Report
due to
the Secretary of State
(June 30, 2004)
Period 2 covering
Jan. 1, 2004 to
May 31, 2004
Beginning of
16-week period
prior to General
Election for
Independent
Expenditures
PRE-PRIMARY
Original
Campaign Finance
Report
due to the Secretary of State
(August 26, 2004)
Period 3 covering
June 1, 2004 to
August 18, 2004
Primary Election Period—All Candidates
July July August
13 27 26
General Election Period—All Candidates
Sep. Sep.
7 8
Oct. Oct.
7 21
POST-PRIMARY
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 7, 2004)
Period 4 covering
Aug. 19, 2004 to
Sep. 27, 2004
PRE-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 21, 2004)
Period 5 covering
Sep. 28, 2004 to
Oct. 13, 2004
Nov. Dec.
2 2
POST-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Dec. 2, 2004)
Period 6 covering
Oct. 14, 2004 to
Nov. 22, 2004
January
February
March
April
May
June
July
August
September
October
November
1
1
1
1
1
1
1, 6, 13, 20, 27
3, 10, 17, 24, 25, 26, 27, 30, 31
1, 2, 3, 7, 8, 14, 21, 28
5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
1, 2, 3
Trigger Reports
Reports that must be filed by nonparticipating candidates. The Original
Report must be filed on the next due date after expenditures exceed 70%
of the original primary election spending limit. In the primary election
period, a Supplemental Report must be filed when expenditures exceed
an additional 10% of the original primary election spending limit. In the
general election period, a Supplemental Report must be filed when con-tributions
less expenditures through the primary election exceed 10% of
the original general election spending limit.
*please refer to the tables*
Office 70%/10% of Primary
Election Spending Limits
70%/10% of General
Election Spending Limits
Legislature $7,924 / $1,132 $11,886 / $1,698
Trigger Reporting Dates
PRIMARY
ELECTION
GENERAL
ELECTION
Revised 3/1/2004
**All reports need to be filed electronically, using the
Campaign Finance Software**
Deadline to submit
candidate statements &
photos to the CCEC for the
primary election pamphlet
Deadline to submit
candidate
statements &
photos to the
CCEC for the
general election
pamphlet
Citizens Clean Elections Commission Timeline—2003-2004 Election Cycle
Nonparticipating Candidates (Statewide Offices)
Feb. 2
2004
JANUARY 31
Original
Campaign
Finance Report
due to the
Secretary of State
(Feb. 2, 2004)
Period 1 covering
Nov. 26, 2002 to
Dec. 31, 2003
March June June July
1 9 30 6
Secretary of State to
calculate Candidate
signature
requirements
Deadline to file
Nominating
Petitions and
Papers with the
Secretary of State
(June 9, 2004)
JUNE 30
Original Campaign
Finance Report
due to
the Secretary of State
(June 30, 2004)
Period 2 covering
Jan. 1, 2004 to
May 31, 2004
Beginning of
16-week period
prior to General
Election for
Independent
Expenditures
PRE-PRIMARY
Original
Campaign Finance Report
due to the Secretary of State
(August 26, 2004)
Period 3 covering
June 1, 2004 to
August 18, 2004
Primary Election Period—All Candidates
July July August
13 27 26
General Election Period—All Candidates
Sep. Sep.
7 8
Oct. Oct.
7 21
POST-PRIMARY
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 7, 2004)
Period 4 covering
Aug. 19, 2004 to
Sep. 27, 2004
PRE-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 21, 2004)
Period 5 covering
Sep. 28, 2004 to
Oct. 13, 2004
Nov. Dec.
2 2
POST-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Dec. 2, 2004)
Period 6 covering
Oct. 14, 2004 to
Nov. 22, 2004
January
February
March
April
May
June
July
August
September
October
November
1
1
1
1
1
1
1, 6, 13, 20, 27
3, 10, 17, 24, 25, 26, 27, 30, 31
1, 2, 3, 7, 8, 14, 21, 28
5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
1, 2
Trigger Reports
Reports that must be filed by nonparticipating candidates. The Original
Report must be filed on the next due date after expenditures exceed 70%
of the original primary election spending limit. In the primary election
period, a Supplemental Report must be filed when expenditures exceed
an additional 10% of the original primary election spending limit. In the
general election period, a Supplemental Report must be filed when con-tributions
less expenditures through the primary election

Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution.

Nonparticipating
Candidate Guide
PREPARED BY: CCEC STAFF, MARCH 2004
STATE OF ARIZONA
CITIZENS CLEAN ELECTIONS COMMISSION
2 0 0 3 - 2 0 0 4 E L E C T I O N C Y C L E
Mission Statement
“To fairly, faithfully and fully implement and administer
the Arizona Citizens Clean Elections Act.”
Table of Contents
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 1
Introduction 3
Chapter 1: How to Become a Candidate 6
Qualifications for Office 6
Statement of Organization 7
Nominating Petitions and Papers 8
Campaign Finance Software 9
Establishing a Campaign Account 9
Resign to Run Law 11
Summary & References 12
Chapter 2: Changing Participation Status and Training Classes 13
Changing Participation Status 13
Nonparticipating Candidate and Treasurer Training Classes 13
Summary & References 15
Chapter 3: Campaign Finance Reports 16
Reporting Requirements 16
Trigger Reports 17
Matching Funds for Participating Candidates 18
Summary & References 19
Chapter 4: Matching Funds for Participating Candidates 20
Primary Election Period Matching Funding 20
General Election Period Matching Funding 22
Summary & References 24
Chapter 5: Campaign Contributions 25
Definition of Contribution 25
Nonparticipating Candidate Contribution Limits 28
Contributions Reported in a Campaign Finance Report 30
Remedying an Excessive Contribution 31
Summary & References 32
Table of Contents
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 2
Chapter 6: Campaign Expenditures 33
Definition of Expenditure 33
Contents of All Campaign Finance Reports 34
Expenditures Reported in a Campaign Finance Report 35
Summary & References 38
Chapter 7: Voter Education 39
Debates 39
Candidate Statement Pamphlets 40
Summary & References 42
Chapter 8: Independent Expenditures 43
Filing an Independent Expenditure Committee 43
Definition of Independent Expenditure 43
Definition of Express Advocacy 43
What is Not Considered to be an Independent Expenditure 45
Independent Expenditure Trigger Reporting Dates 46
Matching Funds for Participating Candidates 47
Summary & References 48
Chapter 9: Post-Election 49
Terminating the Campaign Committee 49
Officeholder Expenses 49
Summary & References 51
Chapter 10: Enforcement 52
Enforcement Procedures 52
Penalties 55
Audits 55
Summary & References 57
Glossary of Terms 58
Timelines
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 3
Welcome to Arizona’s Citizens Clean Elections Commission Nonparticipating Candidate Guide for
the 2003-2004 election cycle. This Guide was created to provide information to candidates
interested in running for legislative or statewide office.
The Citizens Clean Elections Act (“Act”) is a campaign finance reform measure that was initiated by
Arizona citizens and passed by voters in 1998. The Act created a new campaign financing system
that provides full public funding to qualified candidates who agree to abide by the Act and Citizens
Clean Elections Commission (“Commission”) rules. Participating candidates for statewide offices
(governor, secretary of state, state treasurer, attorney general, superintendent of public instruction,
corporation commissioner and mine inspector) and legislative offices (house of representatives and
senate) are eligible to participate in the public funding program. The system is voluntary; candidates
may choose to participate in the system or they may choose to raise funds in the traditional manner.
Candidates who choose to raise funds with private campaign contributions are referred to as
“nonparticipating candidates.”
If you have questions, please do not hesitate to contact us at 1-602-364-3477 or toll free at 1-877-
631-8891. We look forward to working with you.
Authority
Use of this Guide is intended solely as a reference guide. Every effort has been made to present
accurate and reliable information, however, information contained in this Guide changes
periodically. As a result, this Guide may contain some inadvertent errors. The Commission would
appreciate your kindness in notifying our office of any inaccuracies, by calling us or by e-mailing a
staff member.
Readers of this Guide should take note that the information contained herein should not be
considered as having the same weight and authority as the Arizona Revised Statutes and established
court decisions or Attorney General Opinions. In the event any information conflicts, this Guide is
not controlling and users must instead follow relevant legal authority.
Additionally, the information contained in this Guide is not a satisfactory substitute for legal
counsel. If you believe that you or your committee could be adversely affected in any matter relating
to the subject matter contained herein, you should seek the professional assistance of an attorney.
Alternate Formats
This Guide is available in alternate formats. Persons who need information about the Guide in
alternate formats should call the Commission, or e-mail Paula Ortiz at paula.ortiz@ccec.state.az.us.
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 4
The Citizens Clean Elections Commission
In 1998, the people of Arizona created a clean elections system to improve the integrity of Arizona
state government by diminishing the influence of special interest money, to encourage citizen
participation in the political process, and to promote freedom of speech under the U.S. and Arizona
Constitutions.
Commissioners
The Commission consists of five commissioners. The commissioners are committed to enforce the
Act in an honest, independent, and impartial fashion. No more than two members of the
Commission shall be members of the same political party. No more than two members of the
Commission shall be residents of the same county. No one shall be appointed as a member who
does not have a voter registration that has been continuously recorded for at least five years
immediately preceding appointment with the same political party or as an independent.
(Chair) David McKay (R), Flagstaff (Term ending Jan. 31, 2005)
Kathleen S. Detrick (I), Tucson (Term ending Jan. 31, 2006)
Ermila Jolley (D), Yuma (Term ending Jan. 31, 2007)
Marcia Busching (D), Phoenix (Term ending Jan. 31, 2008)
Tracey A. Bardorf (R), Scottsdale (Term ending Jan. 31, 2009)
Sources of Funding
• $5 Tax Check-Off on the Arizona State Income Tax Return
• Dollar-for-Dollar Tax Credit on the Arizona State Income Tax Return
• 10% Surcharge on Civil Penalties and Criminal Fines
• $5 Qualifying Contributions
• Civil Penalties from Enforcement Actions
Introduction
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 5
Contact Information
Citizens Clean Elections Commission Secretary of State’s Office
1616 W. Adams, Suite 110 Administration / Elections:
Phoenix, AZ 85007 Capitol Executive Tower 7th Floor
(602) 364-3477 1700 West Washington Street
(602) 364-3487, fax Phoenix, AZ 85007-2888
1-877-631-8891, toll free (602)542-4285 or (800)458-5842
www.ccec.state.az.us (602) 542-6172, fax
elections@sos.state.az.us
www.sos.state.az.us
Commission Staff
Executive Director
Colleen Connor
Deputy Director
Eric Gorsegner
Campaign Finance Analyst
Rebecca Hecksel
Voter Education Manager
Autumn Southard
Fiscal Services Manager
Colleen McGee
Executive Assistant
Paula Ortiz
Administrative Assistant
Christina Jones
Administrative Assistant
Emily Garcia
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 6
Chapter 1 takes prospective candidates through the preliminary steps on how to register as a
candidate for the 2003-2004 election cycle.
I. Qualifications for Office
Every person elected to any elective office of the state shall be a qualified elector of the political
division in which the person seeks election at the time of filing the nomination papers.
A qualified elector is a person who is properly registered to vote. The qualifications of a person who
is properly registered to vote are all of the following:
• A citizen of the United States.
• 18 years of age or more on or before the date of the next regular general election following
his registration.
• A resident of the state 29 days preceding the next election.
• Able to write name or make mark, unless prevented from doing so by physical disability.
• Has not been convicted of treason or a felony, unless restored to civil rights.
• Has not been adjudicated an incapacitated person.
Every candidate must meet basic qualifications for public office prescribed by the Arizona
Constitution and Arizona Revised Statutes.
State Legislature
Qualifications
• A citizen of the United States at the time of the election.
• At least 25 years of age.
• A resident of Arizona at least three years.
• A resident of the county from which the person is elected at least one year before the
election.
Job Description
The Legislature is a state lawmaking body that proposes and enacts laws, appropriates funds
for the support of the State government, proposes amendments to the State Constitution
and provides public forums for hearings and debates about bills. A legislator may not serve
more than four terms consecutively.
State Senate: The term for Senators is two years.
State House of Representatives: The term for Representatives is two years.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 7
Corporation Commission
Qualifications
Arizona law does not set minimum age or length of residency requirements for a person
who holds the office of corporation commissioner. The law, however, does give specific
requirements for persons elected, appointed to, or holding the office of commissioner and
appointees or employees of the Corporation Commission. They shall NOT be:
• A person in the employ of or holding an official relation to a corporation.
• A person subject to regulations by the Corporation Commission.
• A person owning stocks or bonds of a corporation subject to regulation.
• A person who is pecuniarily interested therein.
Job Description
The Corporation Commission regulates rates charged by gas, water, sewer, electric and
telephone utilities; regulates issuance and enforcement securities; and regulates formation
and filings by all corporations doing business in Arizona. There are five commissioners. The
term for corporation commissioner is four years. A corporation commissioner may not
serve more than two terms consecutively.
II. Statement of Organization
Once an individual determines that he or she meets the qualifications to seek elective office, the next
step is for the individual to file a statement of organization in order to establish the campaign
committee. All campaign committees must file a statement of organization with the Secretary of
State’s Office. The statement of organization may NOT be filed with the Commission.
When to File the Statement of Organization
Each candidate, or individual exploring whether to become a candidate, who intends to receive
contributions or make expenditures of more than $500 in connection with a campaign for office
shall file a statement of organization in order to establish the candidate's campaign committee or
exploratory committee. An individual must file a statement of organization before:
• Making any expenditures,
• Accepting any contributions,
• Distributing any campaign literature, or
• Circulating any petitions.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 8
Contents of Statement of Organization
The statement of organization shall include all of the following:
1. The name, address and type of committee.
• The candidate, or possible candidate, must designate the type of committee, either a
Candidate Committee or Exploratory Committee.
• A Candidate Committee is a political committee designated and authorized by the
candidate. A candidate must establish a candidate committee to qualify for the ballot.
• An Exploratory Committee gives an individual the opportunity to raise and spend
monies in order to explore the possibility of running for office without officially
declaring candidacy. Once the individual makes the decision to run for office, the
individual must establish a candidate committee. A candidate is not required to file an
exploratory committee during the exploratory period.
2. The names, addresses, telephone numbers, occupations and employers of the chairman and
treasurer of the committee. It is permissible for a candidate to be the chairman and treasurer
of his or her own campaign committee.
3. The name, address, office sought and party affiliation of the candidate.
4. Name of the banking institution used by the committee.
Number of Committees
Exploratory Committee: An individual may have only one exploratory committee in existence at a
time.
Candidate Committee: A candidate may have only one campaign committee designated for each
election, however, a candidate may have more than one active campaign committee from different
elections simultaneously in existence.
III.Nominating Petitions & Papers
To qualify for the election ballot, a candidate must meet the following standards:
• For the primary election, a candidate must be an independent candidate, or must properly
file nominating papers and nominating petitions with signatures for the primary election of a
political party entitled to continued representation on the official ballot, or must file the
proper paper work with the Secretary of State to be a write-in candidate.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 9
• For the general election, a candidate must be an independent candidate, or must be a party
nominee of a political party recognized on the official ballot, or must file the proper paper
work with the Secretary of State to be a write-in candidate.
Timeline for Filing Nominating Papers and Petitions
The 30-day period in which candidates may file nominating papers and nominating petitions with
signatures with the Secretary of State’s Office is specified in the chart below:
IV. Campaign Finance Software
After the candidate files the Statement of Organization, the Secretary of State’s Office will give the
candidate the following:
1. Campaign Finance Software 2004 CD-Rom. All campaign finance reports must be filed
electronically with the Secretary of State’s Office using computer software that is provided
by the Secretary of State.
2. A personal identification number (pin) number to access the campaign finance software.
3. A packet of useful information pertaining to the 2003-2004 election cycle.
V. Establishing a Campaign Account
Before a candidate accepts contributions or makes expenditures, the candidate must designate a
financial institution for the campaign account. The candidate shall notify the Secretary of State’s
Office of the designation of the financial institution either at the time of filing the statement of
organization or within five business days after opening an account. All withdrawals or
disbursements from the campaign account require the authorization of the treasurer or a designated
agent of the campaign committee.
During an election cycle, each candidate shall conduct all campaign financial activities through a
single, current election campaign account and any petty cash accounts, as are permitted by law.
FILING PERIOD FOR ALL CANDIDATES
Legislature: May 10, 2004 - June 9, 2004
Corporation Commission: May 10, 2004 – June 9, 2004
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 10
Petty Cash Accounts
A candidate’s campaign committee may establish one or more petty cash accounts.
When reporting the use of petty cash in a campaign finance report, the individual expenditures made
with the cash do NOT need to be reported; only the actual cash withdrawal is required to be
included in campaign finance reports. The campaign treasurer, however, is required to maintain a
record of all expenditures made with petty cash. The record shall identify the name and address of
every person to whom an expenditure is made, the date, and the amount and purpose or reason for
the expenditure. The Commission recommends that the treasurer keep a running total of all petty
cash withdrawals and expenditures.
USE OF PETTY CASH EXAMPLE
On July 16, 2004, a nonparticipating candidate withdraws $200 in cash from the campaign account
to use as petty cash. In the campaign finance software, the candidate shall enter an expenditure for
$200, dated July 16, 2004, payable to the person who withdrew the cash, and a memo stating “petty
cash.” The candidate provides the receipts from the expenditures to the treasurer and the treasurer
retains the following documentation for campaign records:
Petty Cash Expenditures
July 20, 2004 $50 Home Depot lumber for signs
July 21, 2004 $75 Sign Central bumper stickers
July 27, 2004 $75 Kinkos copies of flyers
Prior Campaign Accounts
A candidate may not use a prior campaign account during the current election cycle.
Records and Bookkeeping of Campaign Treasurer
The treasurer of the campaign committee is the custodian of the committee's books and accounts
and shall keep an account of all of the following:
1. All contributions or monies received by or on behalf of the committee.
2. The identification of any person that makes any contribution, the date and amount of each
contribution, and the date of deposit into the campaign account.
3. Cumulative totals contributed by each individual.
4. The name and address of every person to whom any expenditure is made, the date, amount
and purpose or reason for the expenditure.
5. All bank statements for the designated campaign account.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 11
The treasurer shall record a contribution made by check or money order as a contribution by the
person whose signature or name appears on the bottom of the instrument or who endorses the
check or money order before delivery to the committee. If a contribution is made by more than one
person in a single check, the treasurer shall record the amount to be attributed to each contributor.
The treasurer shall preserve all records specified above and copies of all campaign finance reports
for three years after the election.
Access to Records
During the primary election period and the general election period, all candidates shall make
available for public inspection all bank accounts, campaign finance reports, and financial records
relating to the candidate's campaign, either by immediate disclosure through electronic means or at
the candidate's campaign headquarters.
1. All candidates shall maintain at a single location within the state, the books and records of
financial transactions. In all cases, all such information shall be made available for inspection
by the Commission during regular business hours.
2. On request of the attorney general, the county, city or town attorney or the Secretary of
State, the treasurer shall provide any of the records required to be kept by the campaign
treasurer.
VI. Resign to Run Law
The resign to run law applies to incumbent elective officers who seek election to any public office
other than the office that the incumbent is currently holding. If an elected official wishes to declare
his or her candidacy anytime before the final year of the term being held, the officeholder must first
resign his or her office. An elected official is not deemed to have offered himself or herself for
nomination or election to an office or to have made a formal, public declaration of candidacy solely
by his or her designation of a candidate campaign committee.
Chapter 1: How to Become a Candidate
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 12
Summary
􀂙􉥉 In order to run for state or legislative office, a candidate must first file the statement of
organization with the Secretary of State.
􀂙􉥁 A statement of organization must be filed before accepting any contributions, making any
expenditures and collecting any ballot petition signatures.
􀂙􉥔 The Campaign Finance Software, provided by the Secretary of State, must be used to file all
campaign finance reports.
􀂙􉥁 A candidate must establish a single bank account through which all campaign transactions
are processed.
􀂙􉥁 A candidate may establish petty cash accounts.
􀂙􉥔 The campaign treasurer is responsible for maintaining all committee records.
􀂙􉥁 An elected official must resign in order to declare his candidacy for a different elective office,
except when the officer is in the final year of the current elective office.
References
􀂙􉥑 Qualifications for office
• Qualified Elector - Arizona Constitution Article VII, § 15 & A.R.S. § 16-101(A)(1-6)
• Legislature – Arizona Constitution Article V, §§ 1 and 2
• Corporation Commission – A.R.S. § 40-101
􀂙􉥐 Petty cash accounts
• A.R.S. § 16-904(B)
􀂙􉥒 Records and bookkeeping of the campaign treasurer
• A.R.S. § 16-904
􀂙􉥒 Resign to run
• A.R.S. § 38-296
Chapter 2: Changing Participation
Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 13
Chapter 2 takes candidates through the steps on changing participation status, if they so choose,
and learning more about the Act through Commission sponsored training classes. A candidate
who is interested in changing their status from nonparticipating to participating may make this
change during the exploratory and qualifying periods only.
I. Changing Participation Status
A nonparticipating candidate who has accepted contributions up to the limits permissible for
nonparticipating candidates, but later chooses to run as a participating candidate, shall:
• Make the change to participating candidate status during the exploratory and qualifying
periods only;
QUALIFYING PERIOD
January 1, 2004 – August 19, 2004: Legislative Candidates
August 1, 2003 – August 19, 2004: Statewide Candidates
EXPLORATORY PERIOD
November 6, 2002 – December 31, 2003: Legislative Candidates
November 6, 2002 – July 31, 2003: Statewide Candidates
• Return the amount of each contribution in excess of the individual contribution limit for
participating candidates;
• Return all Political Action Committee (PAC) monies received;
• Not have spent contributions exceeding the aggregate early contribution limit, or any part of
a contribution exceeding the individual early contribution limit of $110;
• Comply with all contribution and spending limits required of a participating candidate for
the election cycle.
II.Nonparticipating Candidate and Treasurer Training Classes
The Commission staff conducts training classes for nonparticipating candidates and campaign
treasurers.
If a candidate or a treasurer cannot attend a training class but would like to review training materials,
he or she may contact the Commission and the Commission will send training materials to the
candidate or the treasurer.
Chapter 2: Changing Participation Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 14
For the 2003 – 2004 election cycle, the schedule for the training classes for nonparticipating
candidates and treasurers are as follows:
NONPARTICIPATING CANDIDATE TRAINING CLASSES
Date & Time Location
March 31, 2004 6:00pm Phoenix, Commission Conference Room
April 28, 2004 6:00pm Phoenix, Commission Conference Room
May 25, 2004 6:00pm Phoenix, Commission Conference Room
TREASURER TRAINING CLASSES
Date & Time Location
March 29, 2004 6:00pm Phoenix, Commission Conference Room
April 26, 2004 6:00pm Phoenix, Commission Conference Room
May 18, 2004 6:00pm Phoenix, Commission Conference Room
June 17, 2004 6:00pm Phoenix, Commission Conference Room
The Commission may sponsor additional training classes, as needed. Check the Commission
website at www.ccec.state.az.us for updates on training class dates.
Chapter 2: Changing Participation Status and Training Classes
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 15
Summary
􀂙􉥁 A nonparticipating candidate may choose to become certified as a participating candidate
during the exploratory and qualifying periods only.
􀂙􉥔 The Commission offers training classes for nonparticipating candidates and for campaign
treasurers.
References
􀂙􉥒 Requirements for a nonparticipating candidate to become eligible for participating candidate
status
• A.A.C. R2-20-104(A) & (B)
􀂙􉥖 Voluntary termination of participating candidate status
• A.A.C. R2-20-108
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 16
Nonparticipating candidates are required to file six period campaign finance reports during the
election cycle. Nonparticipating candidates may also be required to file “trigger” reports when
contributions and expenditures meet and exceed certain thresholds.
I. Reporting Requirements
Nonparticipating candidates are required to file six period campaign finance reports during the
election cycle. Nonparticipating candidates may also be required to file “trigger” reports when
contributions and expenditures meet and exceed certain thresholds.
The following chart lists the required period reports and the deadlines for filing the reports. The six
period reports are required of all candidates, whether participating or nonparticipating. All reports
must be filed electronically with the Secretary of State’s Office using the Secretary of State’s
campaign finance software.
NONPARTICIPATING CANDIDATE REPORTING REQUIREMENTS
Due Date Name of Report Covered Period
February 2, 2004 January 31st Report (Period 1) covering November 26, 2002 to
December 31, 2003.
June 30, 2004 June 30th Report (Period 2) covering January 1, 2004 to May
31, 2004.
August 26, 2004 Pre-Primary Report (Period 3) covering June 1, 2004 – August
18, 2004.
October 7, 2004 Post-Primary Report (Period 4) covering August 19, 2004 to
September 27, 2004.
October 21, 2004 Pre-General Report (Period 5) covering September 28, 2004 to
October 13, 2004.
December 2, 2004 Post-General Report (Period 6) covering October 14, 2004 to
November 22, 2004.
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 17
II. Trigger Reports
Nonparticipating candidates must file a series of original and supplemental campaign finance reports
with the Secretary of State’s Office, above and beyond the six period campaign finance reports,
when certain dollar amount thresholds are met or are exceeded. These additional campaign finance
reports are required of all nonparticipating legislative and statewide office candidates regardless of
whether there is a participating candidate in the race. The reports are used by the Commission to
trigger equalization of funding for participating candidates running campaigns under the Act.
1. Nonparticipating candidates must file an original report on the correct filing date, when in
the:
• Primary Election Period: Expenditures through the primary election exceed 70%
of the primary election spending limit; or
• General Election Period: Total contributions made to any date during the general
election period, less expenditures made through the primary election, exceed 70% of
the general election spending limit.
2. Nonparticipating candidates must file supplemental reports, (commonly referred to as
“trigger reports”) which are triggered after the original report has been made, on the
correct filing date each time in the:
• Primary Election Period: Expenditures exceed 10% of the original primary
election spending limit or $25,000, whichever is lower, before the general election
period; or
• General Election Period: Contributions less expenditures through the primary
election exceed 10% of the original general election spending limit or $25,000,
whichever is lower, during the general election period.
Trigger Levels
The following chart summarizes the amounts that trigger reports during the primary and general
election periods:
Office
Primary Election
Spending Limits
70% / 10%
General Election
Spending Limits
70% / 10%
Corporation
Commissioner $45,280 $31,696 /
$4,528 $67,920 $47,544 /
$6,792
Legislature $11,320 $7,924 /
$1,132 $16,980 $11,886 /
$1,698
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 18
Trigger Reporting Dates
Below is a chart of original and supplemental trigger reporting dates. When a nonparticipating
candidate reaches a trigger threshold, the nonparticipating candidate is required to file a campaign
finance report by the next due date listed in the chart. It is important to note that a nonparticipating
candidate is NOT required to file a campaign finance report on each one of these due dates; only the
due date immediately following a trigger level being reached.
NONPARTICIPATING CANDIDATE
2004 TRIGGER REORTING DATES
January 1
February 1
March 1
April 1
May 1
June 1
July 1, 6, 13, 20, 27
August 3, 10, 17, 24, 25, 26, 27, 30, 31
September 1, 2, 3, 7, 8, 14, 21, 28
October 5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
November 1, 2, 3
December none
III. Matching Funds for Participating Candidates
Please refer to the Chapter 4 for details regarding matching funds calculations and the process
through which participating candidates receive matching funding.
Important Note:
Trigger Reports
The campaign finance software provided by the Secretary of State’s Office is programmed
for the triggering events and will prompt the user to file a report whenever appropriate. The
software must be opened and used every day during an election cycle in order for the
triggering events to occur properly. If the campaign transactions are not entered into the
software on a daily basis, a nonparticipating candidate may inadvertently miss a trigger-reporting
deadline.
Chapter 3: Campaign Finance Reports
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 19
Summary
􀂙􉥁 All candidates are required to file six period campaign finance reports during the 2004
election cycle.
􀂙􉥎 Nonparticipating candidates may be required to file “trigger” campaign finance reports when
certain contribution and expenditure thresholds are met and/or exceeded.
􀂙􉥔 The campaign finance software must be used on a daily basis in order for the software to
correctly prompt the user to file trigger reports.
References
􀂙􉥐 Period campaign finance reports
• A.R.S. § 16-913
􀂙􉥔 Trigger campaign finance reports
• A.R.S. § 16-941(B)(2)
• A.R.S. § 16-958
Chapter 4: Matching Funds for
Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 20
When nonparticipating candidates exceed the primary and general election spending limits
established by the Act, participating opponents are entitled to receive matching funds. Chapter
4 explains how matching funds are calculated and disbursed to participating candidates.
DATES OF PRIMARY ELECTION PERIOD
Legislative Offices: July 6, 2004 – September 7, 2004
Statewide Offices: July 6, 2004 – September 7, 2004
I. Primary Election Period Matching Funding
Participating candidates may receive matching funding in the primary election period if their
nonparticipating opponents make expenditures in excess of the primary election spending limit.
Beginning July 6, 2004, the start of the primary election period, the Commission will immediately
provide participating candidates with matching funds whenever expenditures made by a
nonparticipating candidate in the same party primary exceed the primary election spending limit.
PRIMARY ELECTION PERIOD MATCHING FUNDS EXAMPLE
Assumption: 1 legislative seat, 2 candidates
1 participating, 1 nonparticipating
Nonparticipating candidate spends $15,000
Primary election spending limit $11,320
Matching funds provided $3,680
Primary Election Period Matching Funds Limits
The chart below shows the initial primary funding, the maximum primary matching funding and the
maximum primary total funding that is available to participating candidates in the primary election
period. The total monies distributed to a candidate during the primary election period will not
exceed three times the original primary election spending limit.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 21
PRIMARY ELECTION
PERIOD
INITIAL
PRIMARY
FUNDING
MAXIMUM
MATCHING
FUNDS
MAXIMUM
TOTAL
FUNDS
Legislature $11,320 $22,640 $33,960
One-Party-Dominant $16,980 $33,960 $50,940
Independent Legislative $19,810 N/A $19,810
Corporation Commission $45,280 $90,560 $135,840
Independent Corporation
Commission Candidates $79,240 N/A $79,240
Exceptions:
Candidates who have chosen the one-party-dominant reallocation option: Primary
matching funds will start for a participating candidate who has chosen the reallocation option
whenever a nonparticipating opponent exceeds the adjusted primary election spending limit of
$16,980.
Unopposed candidates: Unopposed participating candidates are not eligible to receive
matching funds in the primary election period.
Independent candidates: Independent participating candidates are not eligible to receive
matching funds in the primary election period.
Independent Expenditures
Chapter 8 explains how a participating candidate may be eligible to receive matching funds when an
independent expenditure advocates the election or defeat of a particular candidate.
Process of Providing Matching Funds
1. The Commission staff receives instant notification from the Secretary of State’s Office
whenever nonparticipating candidates file a campaign finance report.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Trigger Reports & Reporting Dates
Please refer to Chapter 3 for information on filing trigger reports and reporting dates.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 22
DATES OF GENERAL ELECTION PERIOD
Legislative Offices: September 8, 2004 – November 2, 2004
Statewide Offices: September 8, 2004 – November 2, 2004
II. General Election Period Matching Funding
Participating candidates may receive matching funding in the general election period if their
nonparticipating opponents receive contributions, minus expenditures made through the primary
election, in excess of the general election spending limit.
GENERAL ELECTION PERIOD MATCHING FUNDS EXAMPLE
Assumption: 1 legislative seat, 2 candidates
1 participating, 1 nonparticipating
Nonparticipating candidate’s total contributions $40,000
Nonparticipating candidate’s primary election expenditures $20,000
Difference $20,000
General Election Spending Limit $16,980
Matching funds provided $3,020
General Election Period Matching Funds Limits
The chart below shows the initial general election funding, the maximum general matching funding
and the maximum general total funding. The total monies distributed to a candidate, during the
general election period, will not exceed three times the original general election spending limit.
GENERAL ELECTION
PERIOD
INITIAL
GENERAL
ELECTION
FUNDING
MAXIMUM
MATCHING
FUNDS
MAXIMUM
TOTAL
FUNDS
Legislature $16,980 $33,960 $50,940
One-Party-Dominant $11,320 $22,640 $33,960
Independent Legislative
Candidates N/A $33,960 $53,770
Corporation Commission $67,920 $135,840 $203,760
Independent Corporation
Commission Candidates N/A $135,840 $215,080
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 23
Exceptions:
Candidates who have chosen the one-party-dominant reallocation option: General
election matching funds will start for a participating candidate who has chosen the
reallocation option whenever a nonparticipating opponent exceeds the adjusted general
election spending limit of $11,320.
Unopposed participating candidates: Unopposed participating candidates are not eligible
to receive matching funds in the general election period.
Unopposed nonparticipating candidates in primary election: Expenditures made
during the primary election period by or on behalf of an independent candidate or a
nonparticipating candidate who was unopposed in a party primary, shall be treated as though
made during the general election period. Therefore, the matching funds calculations will not
include any expenditures made by nonparticipating candidates during the primary election
period.
Process of Providing Matching Funds
1. The Commission staff receives instant notification from the Secretary of State’s Office
whenever nonparticipating candidates file a campaign finance report.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Transfer of Funds and Impact on Matching Funds
A nonparticipating candidate’s transfer of surplus funds from a previous election cycle to an account
to be used in the present election will be considered a contribution, and will be included in the
calculation of matching funds for the general election.
Independent Expenditures
Chapter 8 explains how a participating candidate may be eligible to receive matching funds when an
independent expenditure advocates the election or defeat of a particular candidate.
Trigger Reports & Reporting Dates
Please refer to Chapter 3 for information on filing trigger reports and reporting dates.
Chapter 4: Matching Funds for Participating Candidates
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 24
Summary
􀂙􉥐 Participating candidates may receive matching funds in the primary election cycle if their
nonparticipating opponent makes expenditures in excess of the primary election spending
limit.
􀂙􉥐 Participating candidates may receive a total of three times the original primary election
spending limit from the Commission during the primary election cycle.
􀂙􉥐 Participating candidates may receive matching funds in the general election cycle if their
nonparticipating opponent receives contributions, minus expenditures made in the primary
election period, in excess of the general election spending limit.
􀂙􉥐 Participating candidates may receive a total of three times the original primary election
spending limit from the Commission during the primary election cycle, and a total of three
times the original general election spending limit from the Commission during the general
election cycle.
References
􀂙􉥍 Matching funds calculations
• A.R.S. § 16-952(B) & (E)
• A.A.C. R2-20-113
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 25
The Clean Elections Act reduces the amount of contributions that nonparticipating legislative and
statewide office candidates are permitted to accept. The contribution limits below reflect the adjusted
contribution limits. “Contribution” means any gift, subscription, loan, advance or deposit of
money or anything of value made for the purpose of influencing an election.
I. Definition of Contribution
“Contribution” means any gift, subscription, loan, advance or deposit of money or anything of value
made for the purpose of influencing an election.
Contribution Includes the Following:
• A contribution made to retire campaign debt.
• Money or the fair market value of anything directly or indirectly given or loaned to an
elected official for the purposes of defraying the expense of communications with
constituents, regardless of whether the elected official has declared his or her candidacy.
• The entire amount paid to a political committee to attend a fund-raising or other political
event and the entire amount paid to a political committee as the purchase price for a
fund-raising meal or item. However, it is not considered to be a contribution if the
actual cost of the meal or fund-raising item is for the purchaser’s personal use and not
for resale, and the actual cost is the entire amount paid by the purchaser in connection
with the event. The exception does not apply to auction items.
• Unless specifically exempted, the provision of goods or services without charge or at a
charge that is less than the usual and normal charge for such goods and services.
Contribution Does NOT Include the Following:
1. Personal Services & Travel Expenses
• The value of services provided without compensation by any individual who
volunteers on behalf of a candidate, a candidate’s campaign committee or any other
political committee.
• Any reimbursed payment for personal travel expenses made by an individual who, on
his or her own behalf, volunteers his or her personal services to a candidate.
• Legal or accounting services provided to a candidate at no cost. This exemption
only applies if the only person paying for the services is the regular employer of the
person rendering the services and if services are solely for the purpose of compliance
with A.R.S., Title 16.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 26
2. Duties of Elected Officials
• Money or the value of anything directly or indirectly provided to defray the expense
of an elected official meeting with constituents if the elected official is engaged in the
performance of the duties of his or her office or provided by the state or a political
subdivision to an elected official for communication with constituents if the elected
official is engaged in the performance of the duties of his or her office.
3. Property, Food & Beverages
• An individual may use personal property, including their home, a church or
community room used on a regular basis by members of a community for
noncommercial purposes, in the course of volunteering for a candidate. For
candidate-related activities, each adult in the household may spend up to $100 for
invitations, food and beverages only, which does not count as a contribution to the
candidate. Any amount over $100, or for any other purpose, will need to be
reported as an in-kind contribution from the individual and is subject to individual
contribution limits, or the campaign will have to pay as a campaign expenditure.
4. Political Party Activities
• Slate cards and sample ballots:
The payment by a political party for printing and postage expenses for slate cards,
sample ballots, and other written materials that substantially promote three or more
nominees of the party for public office. This exemption does not apply if costs are
for a display of the listing of candidates made on telecommunications systems or in
newspapers, magazines or similar types of general circulation advertising.
• Campaign Materials:
The political parties purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the
party in connection with volunteer activities on behalf of any nominee of the party.
This exemption does not apply if payments are used for the costs of campaign
materials or activities used in connection with any telecommunications system,
newspaper, magazine, billboard, direct mail or similar type of general public
communication or political advertising.
5. Independent Expenditures
• An expenditure by a person or political committee, other than a candidate’s
campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, and that is made without cooperation or consultation with any
candidate, candidate committee or candidate agent. See Chapter 8 for more information
on independent expenditures.
6. Bank
• Monies loaned by a state bank, a federally chartered depository institution or a
depository institution. In order for this exemption to apply, this loan shall be
deemed a loan by each endorser or guarantor, in that proportion of the unpaid
balance that each endorser or guarantor bears to the total number of endorsers or
guarantors, the loan shall be made on a basis that assures repayment, evidenced by a
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 27
written instrument, shall be subject to a due date or amortization schedule and shall
bear the usual and customary interest rate of the lending institution.
• Interest or dividends earned by a political committee on any bank accounts, deposits
or other investments of the political committee. Participating candidates may NOT
spend these monies. Participating candidates must send this money to the
Commission at the end of the primary election period and at the end of the general
election period.
7. Transfer for Joint Fundraiser
• A transfer between campaigns to distribute monies raised through a joint fund-raising
effort in which each candidate pays a proportionate share of the fundraising
expenses and receives a proportionate share of the funds that are raised.
8. Vendor Extension of Credit
• An extension of credit for goods and services made in the ordinary course of the
vendor's business. This applies only if the vendor provides similar terms of credit to
other nonpolitical customers and makes a reasonable attempt to collect the debt. If
the candidate does not pay the debt after 6 months, it shall be deemed receipt of a
contribution by the candidate, but not a contribution by the creditor. If a candidate
receives an extension of credit, it shall be considered to be outstanding debt and it
shall be included in campaign finance reports filed by the candidate with the
Secretary of State.
9. Officeholder expenditures
• See Chapter 9 for more information on the officeholder expenses rule.
Important Note:
Contribution Prohibitions
A lobbyist may not give a contribution to a legislator or the Governor when the legislature is in
regular session. In addition, lobbyists may not solicit contributions on behalf of a legislator or
the Governor when the legislature is in regular session.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 28
II. Nonparticipating Candidate Contribution Limits
The Clean Elections Act reduces the amount of contributions that nonparticipating legislative and
statewide office candidates are permitted to accept. The contribution limits below reflect the
adjusted contribution limits. There is also no limit on total contributions a nonparticipating
candidate may accept.
Contribution Limits
Legislative Offices
Statewide Offices
Individual’s contribution to a
candidate
$280
$720
Political Committee’s
contribution to a candidate
$280
$720
Super PAC’s contribution to
a candidate
$1,440
$3,600
Nominee’s total from
political party and all political
organizations combined
$7,192
$71,888
Total contributed by an
individual to candidates and
committees who give to
candidates
$3,360 in a calendar year
$3,360 in a calendar year
Personal Monies
There is no limit on the amount a nonparticipating candidate or a nonparticipating candidate’s
family member may contribute to his campaign. Family member is defined as a parent, grandparent,
spouse, child or sibling of the candidate or a parent or spouse of any of those aforementioned
persons.
When a nonparticipating candidate contributes more than $11,840 (legislature)/$23,670 (statewide)
in personal monies to his or her own campaign, the candidate is held to certain notification
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 29
requirements. The nonparticipating candidate must send a written notice indicating the amount
contributed or promised, within 24 hours excluding weekends and holidays, by certified mail, to the
Secretary of State’s Office and to all opposing candidates and their campaign committees. Opposing
nonparticipating candidates then are no longer restricted to the contributions limits (shown in the
above table) and may raise contributions without restriction until such time that they have raised up
to the amount of personal monies contributed or promised to the candidate giving the notification.
Once a candidate has raised monies up to the level of the candidate giving the notification, the
candidate is again held to the contribution limits (shown in the above table).
After the initial notification, each time the candidate contributes or promises to contribute personal
monies exceeding an additional $5,920 (legislature)/$11,840 (statewide), the candidate must again
notify the Secretary of State’s Office as well as all opposing candidates by certified mail within 24
hours, and the contribution limits are again removed from all nonparticipating opponents.
Please refer to the table below for the personal monies notification levels.
Office
Initial Personal Money
notification level
Additional notification
level
Legislature
$11,840
$5,920
Corporation Commission
(Statewide)
$23,670
$11,840
PERSONAL MONIES CONTRIBUTION EXAMPLE
A nonparticipating legislative candidate gives $12,000 to his own campaign. Because this amount is
over the notification level of $11,840, the candidate must notify the Secretary of State’s Office and
his opposing candidates, by certified mail within 24 hours excluding weekends and holidays, that he
has contributed personal monies totaling $12,000 to his own campaign. His opposition may then
go out and raise contributions from political committees, individuals, political parties and all
political organizations totaling $12,000. The contribution limits per political committee, individual,
and political organization are off. An individual can contribute more than $280, a political
committee can contribute $280 and political organizations can contribute more than $7,192 to any
of the opposing candidates.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 30
In-Kind Contributions
An in-kind contribution is a contribution of goods or services or anything of value that is not a
monetary contribution. An individual may give candidates both in-kind contributions and monetary
contributions, however the combined total contributed to the candidate may not exceed
$280/person (legislature) or $720/person (statewide).
In-kind contributions must be assessed at a fair value and must be included in campaign finance
reports filed by the candidate with the Secretary of State.
IN-KIND CONTRIBUTION EXAMPLE
A contributor has 4 boxes of printer paper lying around her home that she would like to donate to
a nonparticipating candidate’s campaign. This would be considered an in-kind contribution by the
contributor to a candidate’s campaign. The in-kind contribution is permissible as long as the
contributor has not already reached her personal contribution limit of $280 (legislative)/$720
(statewide). The candidate needs to asses a fair market value for the paper and she decides on $25
per box. The candidate, therefore, needs to include in the next campaign finance report that she
has received an in-kind contribution of $100 to her campaign and she needs to include a
description of what the in-kind contribution was (example: 4 boxes of printer paper).
Loans
A loan is a contribution. The contribution limits apply to loans. A loan in excess of the contribution
limits is illegal whether or not it is repaid.
III. Contributions Reported in a Campaign Finance Report
A campaign finance report must include all contributions accepted by the committee through the
end of the reporting period. It is the candidate and the treasurer’s responsibility to ensure that all
contributions are entered in the campaign finance software. Entering campaign contributions into
the software on a daily basis is a crucial component of complying with campaign finance laws.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 31
It is the treasurer’s responsibility to communicate to staff the importance of turning in receipts so
that the campaign can remain in compliance with the campaign finance law. The date the
contribution is received is the date used in reporting the contribution. An expenditure made by a
campaign staffer using personal funds is considered a contribution to the campaign, unless the
staffer was given an advance for the expenditure, is reimbursed the same day the expenditure was
made, or the expenditure was for travel and the staffer will not seek reimbursement.
Each contribution reported in a campaign finance report shall include the name, address and
occupation of the contributor. Contributions of $25 or less may be aggregated. The campaign
finance software provides separate sections for the user to enter those contributions less than and
those greater than $25.
IV. Remedying an Excessive Contribution
If a candidate receives a contribution that exceeds the contribution limits, the candidate must refund
the excessive contribution to the contributor. The candidate must enter the original amount
received and the refunded amount in the campaign finance software. The software contains a
designated section to key in refunded contributions.
Chapter 5: Campaign Contributions
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 32
Summary
􀂙􉤜 “Contribution” means any gift, subscription, loan, advance or deposit of money or anything
of value made for the purpose of influencing an election.
􀂙􉥎 Nonparticipating candidates are subject to limitations on contributions from individuals,
PACs and political parties, however there is no aggregate contribution limit.
􀂙􉥁 An in-kind contribution is a contribution of goods or services or anything of value that is
not a monetary contribution.
􀂙􉥁 A campaign finance report filed by a nonparticipating candidate shall include all
contributions received through the end of the reporting period.
References
􀂙􉥎 Nonparticipating candidate contribution limits
• A.R.S. § 16-905
• A.R.S. § 16-941(B)(1)
􀂙􉥄 Definition of contribution
• A.R.S. § 16-901(5)
􀂙􉥐 Personal monies notification
• A.R.S. § 16-905(F)
􀂙􉥄 Definition of in-kind contribution
• A.R.S. § 16-901(15)
􀂙􉥃 Campaign loans
• A.R.S. § 16-901(5)(a)(ii)
􀂙􉥃 Contents of campaign finance reports
• A.R.S. § 16-915
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 33
A campaign expenditure is incurred when a committee makes a direct payment to a vendor or
incurs debt. A campaign finance report must include all expenditures made by the committee
through the end of the reporting period.
I. Definition of Expenditure
An “expenditure” is any purchase, payment, distribution, loan, advance, deposit or gift of money or
anything of value made by a person for the purpose of influencing an election in this state. The
definition of expenditure includes a contract, promise or agreement to make an expenditure
resulting in an extension of credit and the value of any in-kind contribution received.
Expenditure Does NOT Include the Following:
• A news story, commentary or editorial distributed through any telecommunications
system, newspaper, magazine or other periodical publication. This exemption does not
apply if the publications’ facilities are owned or controlled by a political committee,
political party or candidate.
• Nonpartisan activity designed to encourage individuals to vote or to register to vote.
• The payment by a political party of the costs of preparation, display, mailing or other
distribution incurred by the party with respect to any printed slate card, sample ballot or
other printed listing of three or more candidates for any elective office. This exemption
does not apply if the display of candidates is made on any telecommunications system or
in newspapers, magazines or similar types of general public political advertising.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the
party in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political
advertising.
• Any deposit or other payment filed with the Secretary of State or any other similar
officer to pay any portion of the cost of printing an argument in a publicity pamphlet
advocating or opposing a ballot measure.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 34
II. Contents of All Campaign Finance Reports
All campaign finance reports shall include the following information regarding the campaign’s
receipts and disbursements:
1. The amount of cash on hand at the beginning of the reporting period.
2. For the reporting period and the election, the total amount of all receipts and an itemized list
of all receipts in the following categories, together with the total of all receipts in each
category:
a. Contributions from individuals.
b. Contributions from political committees.
c. For a candidate's campaign committee, the candidate's contribution or promise of
personal monies, including loans guaranteed by the candidate.
d. All other loans.
e. Rebates, refunds and other offsets to operating expenditures.
f. Dividends, interest and other forms of receipts.
g. The value of in-kind contributions.
3. The identification of each:
a. Individual who makes any contribution during the period covered by the report
whose total contribution or contributions for that election have an aggregate amount
exceeding twenty-five dollars together with the date and amount of the
contributions. Contributions of twenty-five dollars or less may be aggregated.
b. Political committee that makes a contribution during the period covered by the
report together with the date and amount of the contribution.
c. Person who makes a loan during the period covered by the report, together with the
identification of any endorser or guarantor of the loan and the amount endorsed or
guaranteed by each, and the date and amount of the loan.
d. Person who provides any rebate, refund or other offset to operating expenditures
during the period covered by the report together with the date and amount of the
receipt.
Important Note:
Making Expenditures
No expenditure may be made for or on behalf of a committee without the authorization of the
treasurer or his designated agent.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 35
e. Person who provides a dividend, interest or other receipt during the period covered
by the report, together with the date and amount of the receipt.
4. For the reporting period and the election, the total amount of all disbursements and an
itemized list of all disbursements in the following categories together with the total of all
disbursements in each category:
a. Expenditures, other than a contract, promise or agreement to make an expenditure
resulting in an extension of credit, made to meet committee operating expenses.
b. Transfers to other political committees.
c. For a candidate's campaign committee, the repayment of loans made or guaranteed
by the candidate.
d. Repayment of all other loans.
e. Refunds of contributions received and other offsets to contributions.
f. Loans made by the reporting political committee.
g. The value of in-kind contributions received.
h. Independent expenditures.
i. Any other disbursements.
5. The name and address of each recipient of an expenditure made during the period covered
by the report and the date, amount of the expenditure and a clear description of the items or
services purchased.
6. An itemized account of the campaign debts and extensions of credit that are owed by the
candidate or political committee and that remain outstanding, including the name and
address of the obligee or creditor, the amount owed, whether the amount is certain or
estimated and on what basis, and the purpose of the obligation. An obligation that is
itemized on a campaign finance report shall be listed on all subsequent finance reports until
extinguished.
7. The total sum of all receipts, together with the total receipts less offsets, and the total sum of
all disbursements, together with the total disbursements less offsets, for both the period
covered by the report and the election.
III. Expenditures Reported in a Campaign Finance Report
A campaign finance report must include all expenditures made by the committee through the end of
the reporting period. It is the candidate’s responsibility to ensure that all expenditures are entered in
the campaign finance software. Entering campaign expenditures into the software on a daily basis is
a crucial component of complying with campaign finance law. It is the candidate’s responsibility to
communicate to staff the importance of turning in receipts so that the campaign can remain in
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 36
compliance with the campaign finance law. Each expenditure reported in a campaign finance report
shall include a description of the goods and services that were purchased. The campaign finance
software provides a space for the user to enter a description for each expenditure.
Reporting Debt
The definition of “expenditure” includes campaign debt and extensions of credit. Debt is incurred
by a candidate when the promise, contract or agreement to make an expenditure occurs. For
example, if a candidate places an order for campaign signs that is payable upon delivery, the moment
the candidate places the order, the candidate has incurred a debt.
The campaign finance software contains a specific section for outstanding debt to be entered. If the
exact level of debt is unknown, it shall be estimated. Each campaign finance report must include an
itemized account of the campaign debts and extensions of credit that are owed by the candidate and
that remain outstanding. The campaign finance report must include the name and address of the
obligee or creditor, the amount owed, whether the amount is certain or estimated and on what basis,
and the purpose of the obligation. An obligation that is itemized on a campaign finance report shall
be listed on all subsequent finance reports until extinguished. Debt and extensions of credit must be
reported continuously until paid.
*Exception: Regularly recurring administrative expenses such as rent, utilities and salaries are NOT
considered to be debts until the payments are past due.
Using a Personal Credit Card
The treasurer shall instruct campaign workers on the need to arrange for advances for travel
expenses or to request a campaign check to purchase goods or services for the campaign.
If someone uses a personal credit card on behalf of a campaign, the expenditure is incurred
immediately upon use, not when the bill is received. Until such time that the campaign reimburses
the individual who used the credit card, the amount is considered to be an in-kind contribution.
When the person who used the credit card is reimbursed, the treasurer shall include on the campaign
finance report the full name and street address of the person, and the nature of the goods and
services for which payment has been made.
Petty Cash Accounts
A candidate’s campaign committee may establish one or more petty cash accounts. On a campaign
finance report, the treasurer shall identify the name and address of the person who withdrew the
cash, the date, the amount of cash withdrawn, and a memo stating “petty cash.”
Expenditures made with petty cash do not need to be itemized on a campaign finance report;
however, the treasurer shall maintain a detailed record of all expenditures that are made with petty
cash.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 37
Refund & Repayment
If a candidate receives a refund from an expenditure (for example, the candidate returned
merchandise to the store), the original expenditure and the refunded amount must be reported. The
campaign software includes a specific section to report refunds.
A loan repayment is NOT an expenditure. The campaign finance software contains a specific
section to enter in loan repayments.
A refund of a contribution is NOT an expenditure. The campaign finance software contains a
specific section to enter in contribution refunds.
Important Notes:
Reporting Expenditures
• Any outlay of cash, the writing of a personal check or the use of a credit card by a staff
member or consultant for which the staff member or consultant will be reimbursed is
considered to be an expenditure on the day the cash, check, or credit card is used, NOT when
the person is reimbursed.
• If the campaign orders any service or good, and either knows the cost of that good or service,
or can make a reasonable estimate of that service or good, the expenditure must be reported
in the reporting period that includes the date that the campaign orders the service (for
example, if a campaign knows the per copy cost of printing, and orders 100,000 copies, it
must report the expenditure in the reporting period that includes the date it orders the
copies—even if an invoice is received later).
• Recurring services such as telephone service, cell phone service, utility service, and rent,
become reportable expenditures the date that the campaign (or consultant or staff, if a staff
member or consultant will pay the bill and be reimbursed) receives the bill as long as the bill is
sent using the same billing procedures for its other customers.
Chapter 6: Campaign Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 38
Summary
􀂙􉥁 A campaign finance report filed by a candidate must include all expenditures made by the
committee through the end of the reporting period. This includes any outstanding debt.
􀂙􉥏 Outstanding debt is incurred whenever a promise, contract or agreement to make an
expenditure occurs.
􀂙􉥁 An expenditure made with a credit card is incurred immediately upon use, NOT when the
bill is received.
References
􀂙􉥄 Definition of expenditure
• A.R.S. § 16-901(8)
􀂙􉥃 Contents of campaign finance reports
• A.R.S. § 16-915
􀂙􉥐 Petty cash accounts
• A.R.S. § 16-948(C)
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 39
The Commission sponsors debates for candidates in both the primary and general election
periods. Nonparticipating candidates are encouraged to participate in the debates. The
Commission mails a candidate statement pamphlet to each household in Arizona with a
registered voter. All candidates are given the opportunity to submit a statement and a
photograph to be included in the pamphlets.
I. Debates
The Commission sponsors debates among candidates in both the primary election period and the
general election period. Participating candidates are required to attend and participate in debates.
The Commission also invites and encourages nonparticipating candidates to participate in debates.
The Commission chooses sponsors and ensures the debates are carried out in a strictly nonpartisan
and professional manner. The Commission will be considered a “co-sponsor” of the debates for
advertising purposes; however, the “sponsoring organization” will make all debate arrangements,
including dates, times, locations, media coverage, format and ground rules.
Participation
Nonparticipating candidates are invited and encouraged to participate in debates. Candidates invited
to participate in the debates will be limited to those candidates who will appear on the primary or
general election ballots. All candidates must appear in person, not by proxy or electronically, unless
to accommodate a disability. One debate will be held in the primary election period and one debate
will be held in the general election period, circumstances permitting.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 40
II. Candidate Statement Pamphlets
The Commission will produce primary and general election candidate statement pamphlets for the
2004 elections. The Commission will produce and mail candidate statement pamphlets to every
household in Arizona that has a registered voter before the start of early voting for both the primary
and general elections.
Nonparticipating candidates may supply the Commission with a statement and photograph for
inclusion in the pamphlets. All candidates who will appear on either the primary or general election
ballot may submit a statement by the deadline. The pamphlets will include the office in which the
candidate is running, as well as the candidate’s name, party affiliation, funding source, web address
and statement. Candidates will be allowed to submit separate statements for the primary and general
election pamphlets.
Submission Deadlines
The Commission will not accept late submissions for inclusion in the pamphlets. Primary election
statements and photographs shall be submitted no later than 5:00pm on June 9, 2004 for inclusion
in the primary election pamphlet. General election statements and photographs shall be submitted
no later than 5:00pm on July 27, 2004.
Statements
The 2004 pamphlets will include statements of 200 words in length. The Commission will allow
candidates to submit separate statements for the primary and general election pamphlets. New
statements will be accepted for the general election pamphlet. If a statement is not submitted for
the primary election pamphlet, and a candidate wins the primary election, the candidate may submit
a statement for the general election pamphlet. If a candidate submits a statement for the primary
election pamphlet and does not submit a new statement for the general election pamphlet, the
statement from the primary election pamphlet will be used for the general election pamphlet.
The Commission will only accept statements electronically through the Commission’s website.
Statements that exceed the allotted 200 words will be NOT be accepted.
Photographs
The 2004 pamphlets will include photographs of candidates. A statement can be submitted without
having submitted a photograph, or vice versa. The Commission will accept digital photos only.
Candidates can submit digital photos through the Commission website, by e-mail or candidates can
make an appointment to have a digital photo taken at the Commission’s graphic design firm. If a
candidate submits a photo for inclusion in the primary election pamphlet, the same photo will be
used for the general election pamphlet. Photos for inclusion in the general election pamphlet will
only be accepted from candidates who did not submit a photo for inclusion in the primary election
pamphlet.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 41
Submission Process
• Submit the statement and photo online at www.ccec.state.az.us. After the statement and photo
are submitted, a verification form will appear.
• Print out and review the verification form for submission to the Commission.
• Sign and date the verification form and make a copy of the verification form for candidate
records.
• Fax the verification form or mail the verification form to the Commission immediately after the
statement is submitted.
• The Commission will receive the verification form and enter the statement and photo into the
pamphlets.
All statements will appear in the pamphlets exactly as they are submitted. The Commission will not
permit changes to statements after the final verification form has been returned.
Upon request, the Commission will offer the use of an internal, public computer should candidates
need to utilize these facilities in order to submit statements. This computer will be housed at the
Commission’s office.
Please visit the Commission’s website at www.ccec.state.az.us for detailed instructions on how to
submit a statement and photograph.
Format and Availability
The pamphlets will be available in English/Spanish and large-type print. The Commission will
distribute additional copies of the pamphlets to the Secretary of State’s Office, the 15 county
election offices, political parties, and libraries.
For the primary election, the pamphlets will be mailed to households no later than August 5, 2004.
For the general election, the pamphlets will be mailed no later than September 30, 2004.
Chapter 7: Voter Education
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 42
Summary
􀂙􉥔 The Commission sponsors debates that are administered by sponsoring organizations that
make all debate arrangements, including dates, times, locations, media coverage, format and
ground rules.
􀂙􉥎 Nonparticipating candidates are invited and encouraged to participate in the debates.
􀂙􉥔 The Commission mails Candidate Statement Pamphlets to each household in Arizona with a
registered voter.
􀂙􉥁 All candidates who are qualified for the ballot are invited to submit a statement and a
photograph to be included in the Candidate Statement Pamphlets.
􀂙􉥄 Detailed instructions regarding how to submit a statement and photograph are available on
the Commission’s website at www.ccec.state.az.us.
References
􀂙􉥃 Commission is responsible for sponsoring debates
• A.R.S. § 16-956(A)(2)
• A.A.C. R2-20-107(A)
􀂙􉥃 Commission is responsible for producing and mailing candidate statement pamphlets
• A.R.S. § 16-956(A)(1)
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 43
A person or group may make an independent expenditure to advocate the election or defeat of
a candidate or candidates. Those who make independent expenditures must register with the
Secretary of State and must file campaign finance reports whenever certain triggering thresholds
are met and exceeded. Participating candidates may receive matching funds for independent
expenditures that are made against them or in favor of their opponents.
I. Filing an Independent Expenditure Committee
A person or group who wants to make independent expenditures cumulatively exceeding $500 is
required to file a statement of organization with the Secretary of State before receiving contributions
or making expenditures. Once registered with the Secretary of State, the person is held to all
campaign finance laws and reporting requirements. The Secretary of State will provide the person
with a copy of the campaign finance software, which shall be used to electronically file all campaign
finance reports.
A person or group who wants to make independent expenditures that cumulatively do NOT exceed
$500 must file a $500 threshold exemption statement with the Secretary of State.
II. Definition of Independent Expenditure
An independent expenditure is an expenditure by a person or political committee, other than a
candidate's campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, that is made without cooperation or consultation with any candidate or
committee or agent of the candidate and that is not made in concert with or at the request or
suggestion of a candidate, or any committee or agent of the candidate.
III. Definition of Express Advocacy
1. Conveying a communication containing a phrase such as "vote for," "elect," "re-elect,"
"support," "endorse," "cast your ballot for," "(name of candidate) in (year)," "(name of
candidate) for (office)," "vote against," "defeat," "reject," or a campaign slogan or words that in
context can have no reasonable meaning other than to advocate the election or defeat of one or
more clearly identified candidates; or
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 44
2. Making a general public communication, such as in a broadcast medium, newspaper, magazine,
billboard, or direct mailer referring to one or more clearly identified candidates and targeted to
the electorate of that candidate(s):
• That in context can have no reasonable meaning other than to advocate the election
or defeat of the candidate(s), as evidenced by factors such as the presentation of the
candidate(s) in a favorable or unfavorable light, the targeting, placement, or timing of
the communication, or the inclusion of statements of the candidate(s) or opponents;
or
• In the sixteen-week period immediately preceding a general election.
3. A general public communication shall not be considered as one that "expressly advocates"
merely because it presents information about the voting record or position on a campaign issue
of three or more candidates, so long as it is not made in coordination with a candidate, political
party, agent of the candidate or party, or a person who is coordinating with a candidate or
candidate's agent.
Express Advocacy v. Issue Advocacy
The Commission shall consider whether the communication expressly advocates the election or
defeat of a clearly identified candidate, and whether or not it was made in concert with a candidate.
In determining if a communication expressly advocates the election or defeat of a candidate, rather
than advocating an issue, the Commission will review the following 3 components.
1. Even if it is not presented in the clearest, most explicit language, speech is "express" if its
message is unmistakable, unambiguous, and suggestive of only one plausible meaning.
2. Speech may only be termed "advocacy" if it presents a clear plea for action, and thus speech
that is merely informative is not covered by the Act.
3. It must be clear what action is advocated. Speech cannot be "express advocacy of the
election or defeat of a clearly identified candidate" when reasonable minds could differ as to
whether it encourages a vote for or against a candidate or encourages the reader to make
some other kind of action. If any reasonable alternative reading of speech can be suggested,
it cannot be express advocacy subject to the Act's disclosure requirements.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 45
IV. What is NOT Considered to be an Independent Expenditure
An expenditure by a political committee or a person that does not meet the definition of an
independent expenditure is considered to be an in-kind contribution to the candidate, and a
corresponding expenditure by the candidate, unless otherwise exempted. An expenditure is NOT
an independent expenditure if any of the following applies:
• Any officer, member, employee or agent of the political committee making the expenditure
is also an officer, member, employee or agent of the committee of the candidate whose
election or whose opponent's defeat is being advocated by the expenditure or an agent of the
candidate whose election or whose opponent's defeat is being advocated by the expenditure.
• There is any arrangement, coordination or direction with respect to the expenditure between
the candidate or the candidate's agent and the person making the expenditure, including any
officer, director, employee or agent of that person.
• In the same election the person making the expenditure, including any officer, director,
employee or agent of that person, is or has been:
(i) Authorized to raise or expend monies on behalf of the candidate or the candidate's
authorized committees.
(ii) Receiving any form of compensation or reimbursement from the candidate, the
candidate's committees or the candidate's agent.
• The expenditure is based on information about the candidate’s plans, projects or needs, or
those of his campaign committee, provided to the expending person by the candidate or by
the candidate’s agents or any officer, member or employee of the candidate’s campaign
committee with a view toward having the expenditure made.
Exceptions for Certain Organizations
Certain organizations are permitted by law to make expenditures that will not be considered to be
political contributions to a candidate or an independent expenditure:
1. Communications by a corporation to its stockholders and executive or administrative
personnel and their families, or by a labor organization to its members and their families, on
any subject.
2. Nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its
stockholders and executive or administrative personnel and their families or by a labor
organization aimed at its members and their families.
3. The establishment, administration and solicitation of voluntary contributions to a separate
segregated fund to be utilized for political purposes by a corporation, labor organization,
membership organization, trade association, cooperative or corporation without capital
stock.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 46
4. The establishment, administration and solicitation of voluntary contributions from
employees of a corporation or limited liability company, including contributions made by
payroll deduction, deposit or transfer or other similar method, and that are made directly to
a separate segregated fund that is used for political purposes by a trade association of which
the employing corporation or limited liability company is a member.
5. Contributions for use to support or oppose an initiative or referendum measure or
amendment to the constitution.
6. A membership organization, trade association, cooperative or corporation without capital
stock may engage in the activities permitted in paragraphs 1 and 2 of this section if such
activities are directed toward its members, stockholders or members of its members, its and
its members' executive or administrative personnel, and their families.
V. Independent Expenditure Trigger Reporting Dates
A person making an independent expenditure is required to file campaign finance reports whenever
certain expenditure thresholds are reached. Any person that makes independent expenditures
cumulatively exceeding $550 in an election cycle is required to file an original campaign finance
report by the next due date listed in the chart below. A supplemental campaign finance report must
be filed by the next due date when previously unreported independent expenditures exceed $1,000.
Below is a chart of original and supplemental trigger reporting dates. When a person making an
independent expenditure reaches a trigger threshold, the person is required to file a campaign
finance report by the next due date listed in the chart. Each independent expenditure reported must
include a designation of the office and the candidate(s) whose election or defeat is being advocated,
and whether the independent expenditure advocates the election or the defeat of the candidate(s).
The campaign finance software provides designated areas to enter the required information.
INDEPENDENT EXPENDITURE
2004 TRIGGER REPORTING DATES
January 1
February 1
March 1
April 1
May 1
June 1
July 1, 6, 13, 20, 27
August 3, 10, 17, 24, 25, 26, 27, 30, 31
September 1, 2, 3, 7, 8, 14, 21, 28
October 5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
November 1, 2, 3
December none
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 47
VI. Matching Funds for Participating Candidates
The Commission will provide matching funding to participating candidates affected by independent
expenditures. Participating candidates may receive matching funding for independent expenditures
made against them or in favor of opposing candidates. However, the total monies distributed to a
candidate during an election period will not exceed three times the original election spending limit.
The following expenditures shall be treated as follows when calculating matching funds:
• Independent expenditures against a participating candidate shall be treated as expenditures
of each opposing candidate in the primary election period, or contributions to each opposing
candidate in the general election period.
• Independent expenditures in favor of one or more nonparticipating opponents of a
participating candidate shall be treated as expenditures of those nonparticipating candidates
in the primary election period or contributions to those nonparticipating candidates in the
general election period.
• Independent expenditures in favor of a participating candidate shall be treated, for every
opposing participating candidate, as though the independent expenditures were an
expenditure of a nonparticipating opponent in the primary election period, or a contribution
to a nonparticipating opponent in the general election period.
For further details regarding matching funds calculations, refer to the primary and general elections
matching funds explanations in chapter 4.
Process of Providing Matching Funds
1. The Commission receives notification from the Secretary of State’s Office whenever persons
making independent expenditures file a campaign finance report. The Commission has the
authority to provide matching funds based on information gathered from a campaign
finance report or from other information that comes to the Commission’s attention.
Therefore, if a person fails to report activity but the Commission is aware that independent
expenditures have been made, the Commission may estimate the value of a known
expenditure and provide matching funds to participating candidates.
2. The Commission staff calculates the amount of matching funds that are due to the
participating candidate and notifies the candidate when funds will be available.
3. The matching fund checks are typically available on the next business day after Commission
staff receives notification from the Secretary of State’s Office. However, the Arizona
Department of Administration (ADOA) processes the checks and the Commission has no
control over ADOA timelines.
Chapter 8: Independent Expenditures
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 48
Summary
􀂙􉥐 Persons or groups who want to make independent expenditures cumulatively exceeding
$500 must first file a statement of organization with the Secretary of State. Persons or
groups who want to make independent expenditures that cumulatively do not exceed $500
must file a $500 threshold exemption statement with the Secretary of State.
􀂙􉥁 An independent expenditure is an expenditure that is made without cooperation or
consultation with the candidate whose election or defeat is being expressly advocated.
􀂙􉥐 Persons making independent expenditures must file campaign finance reports when certain
expenditure thresholds are met and exceeded.
􀂙􉥐 Participating candidates may receive matching funds for independent expenditures that are
made against them or in favor of their opponents.
References
􀂙􉥒 Registration of independent expenditure committees
• A.R.S. § 16-902.01
􀂙􉥄 Definition of independent expenditure
• A.R.S. § 16-901(14)
􀂙􉥄 Definition of express advocacy
• A.R.S. § 16-901.01
􀂙􉥐 Permitted expenditures by corporation and labor organizations
• A.R.S. § 16-920
􀂙􉥔 Trigger reporting levels and dates
• A.R.S. § 16-941(D)
• A.R.S. § 16-958
􀂙􉥍 Matching funds calculations
• A.R.S. § 16-952
• A.A.C. R2-20-113
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 49
After an election, a candidate may terminate his committee by filing a termination statement
with the Secretary of State. All office holders may establish a separate account to raise and
spend monies for officeholder related expenses.
I. Terminating the Campaign Committee
A candidate may terminate his or her political committee by having the committee chairman and
treasurer file a termination statement with the Secretary of State. The chairman and treasurer certify
that the committee will no longer receive any contributions or make any disbursements, that the
committee has no outstanding debts or obligations, and that any surplus monies have been disposed
of properly.
The Secretary of State requires the committee to file a campaign finance report showing a zero
account balance before the committee can officially be terminated.
II. Officeholder Expenses
Current officeholders, both participating and nonparticipating, are permitted to raise and spend
money to pay for officeholder related expenses. The intent of the officeholder expenses rule is to
allow participating candidates to raise money to spend on office related needs and to help prevent
nonparticipating candidates from triggering matching funds for their opponents in future elections.
Failure to register an officeholder expenses committee may cause participating candidates to
inadvertently exceed their next election cycle early contribution limits and nonparticipating
candidates to inadvertently trigger matching funds for their opponents.
Spending Limits
Prior to April 30 of the election year for that office, an elected official may raise or spend money to
defray the expense of performing officeholder duties.
• The candidate may exhaust all surplus monies from prior campaign accounts or may use
personal monies for officeholder expenses.
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 50
• Money raised shall be only from individuals and the maximum raised from an individual
during the election cycle shall not exceed $110.
• The sum of the money raised or spent shall not exceed two times the early contribution limit
applicable to the officeholder’s current office. The chart below lists the limits for each
office:
2004 OFFICEHOLDER EXPENSES LIMITS
Legislature $5,660
Governor $88,280
Secretary of State $45,280
Attorney General $45,280
Treasurer $22,640
Superintendent of Public Instruction $22,640
Corporation Commission $22,640
Mine Inspector $11,320
Officeholder Expense Account
Before making any expenditures or raising any monies for the officeholder expense account, the
officeholder must file a statement of organization with the Secretary of State with the designation
“Officeholder Expense Account.” The account shall be separate from any candidate campaign
account. All activity related to officeholder expenses are deemed reportable. The officeholder must
file all period campaign finance reports, until such time that the account has been terminated with
the Secretary of State. Any money remaining in the officeholder expense account after April 30 of
an election year shall either not be spent for the remainder of the calendar year, or shall be remitted
to the Fund.
Time Limit
Officeholder expenses money must be raised, spent, and the benefit from the expenditure received
by April 30 of the election year. Any expenditure made after April 30 will be considered to be a
regular campaign expenditure. For current legislative officeholders, the cutoff date is April 30, 2004.
For current statewide officeholders, the cutoff date is April 30 of their respective re-election year.
Permissible Expenditures
Money in the officeholder expense account CANNOT not be used for direct campaign purposes or
in connection with the officeholder’s future campaign for elective office.
Permissible uses of the money in the officeholder expense account include:
• Expenditures for office equipment and supplies.
• Expenditures for work-related travel.
• Donations to tax-exempt charitable organizations.
• Expenditures to meet or communicate with constituents.
Chapter 9: Post-Election
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 51
Summary
􀂙􉥉 In order to terminate the candidate committee, the candidate must file a termination
statement with the Secretary of State and must file a campaign finance report showing a zero
account balance.
􀂙􉥃 Current officeholders may raise and spend monies for officeholder related expenses. A
separate account must be established with the Secretary of State.
References
􀂙􉥔 Terminating the campaign committee
• A.R.S. § 16-914(A)
􀂙􉥏 Officeholder expenses
• A.A.C. R2-20-104(F)
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 52
The Commission is charged with the responsibility of enforcing the Clean Elections Act and
has the authority to impose civil penalties. The Commission may initiate an enforcement action
based on staff analysis, or the Commission may receive a written complaint from a member of
the public. The Commission also has the authority to conduct financial audits on all
candidates’ campaign accounts.
I. Enforcement Procedures
Externally Generated
Any person may file a complaint against a candidate if he or she believes a violation of the
Commission Act or Rules has occurred or is about to occur. The complaint must be made in
writing, and the signature of the complainant must be notarized. The Commission will NOT accept
verbal or anonymous complaints. A compliant complaint must:
• Provide the full name and address of the person filing the complaint (“complainant”);
• Be signed, sworn to and notarized by a notary public;
• Clearly identify each person, committee or group that is alleged to have committed a
violation (“respondent”);
• Clearly recite the facts showing specific violations under the Commission’s jurisdiction;
• Include any documentation supporting the allegations; and
• Differentiate between statements based on the complainant’s personal knowledge and
those based on information from others.
If the complaint is in compliance with the above listed requirements, the Commission will assign it a
Matter Under Review (MUR) number, send an acknowledgement to the complainant and send a
copy of the complaint to the respondent. If the complaint does not comply with the above listed
requirements, the Commission shall notify the complainant and the complainant may resubmit his
or her complaint.
Internally Generated
The Commission staff, in its review of campaign finance reports, or otherwise, may initiate an
internally generated complaint against a candidate. The complaint is handled in an identical manner
to an externally generated complaint, with the Commission acting as the complainant.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 53
Respondent’s Opportunity to Respond to a Complaint
Within 5 days after receiving a complaint, the Commission will send a copy of the complaint to the
respondent. Upon receipt, the respondent has 5 days to provide the Commission with a written
response.
After the 5-day response period, the Executive Director will evaluate the matter to determine
whether there is reason to believe that a violation has occurred. The Executive Director has the
authority to dismiss frivolous and erroneous complaints without them being presented to the
Commission.
Reason to Believe Recommendation
The Executive Director will review the written complaint, the respondent’s written response,
campaign finance reports and any supporting documentation provided by the complainant and
respondent. A full-fledged investigation of the matter will not begin unless the Commission finds
reason to believe a violation has occurred.
The Executive Director shall make a recommendation to the Commission at a public Commission
meeting whether or not there is reason to believe a violation has occurred. If the Commission
decides that there is no reason to believe a violation has occurred, the matter will be closed and both
parties will be notified in writing. If at least 3 of the 5 commissioners find that there is reason to
believe a violation has occurred, the Commission staff will open an investigation into the matter.
Investigation
If the Commission finds that there is reason to believe that a violation has occurred, the
Commission shall serve on that person an order stating with reasonable particularity the nature of
the violation and requiring compliance within 14 days. During that period, the respondent may
provide an explanation to the Commission, comply with the order, or enter into a public
administrative settlement with the Commission. Also, during the 14-day period, the Commission
may perform additional investigative work and will consider any additional explanation provided by
the respondent. The Commission investigation may include field investigations, audits and other
methods of information gathering. The Commission may also issue subpoenas and orders requiring
persons to answer written questions.
Probable Cause to Believe Recommendation
Upon expiration of the 14 days and the investigation, the Executive Director will prepare a probable
cause to believe recommendation stating his or her recommendation on whether there is probable
cause to believe that a violation has occurred. The Executive Director’s recommendation will be
sent to the respondent and the respondent will have 10 days to respond, in writing, to the
recommendation. After reviewing the respondent’s response (if any), the Executive Director will
prepare a final recommendation to the Commission.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 54
The Executive Director will present the probable cause to believe recommendation to the
Commission at a public meeting. If the Commission finds that there is probable cause to believe a
violation has occurred, the Commission shall make a public finding to that effect and issue an order
assessing a civil penalty, unless the Commission publishes findings of fact and conclusions of law
expressing good cause for reducing or excusing the penalty. If the Commission finds no probable
cause, the complaint shall be terminated and both the respondent and complainant will be notified
in writing.
Any candidate in a particular election contest who believes that any opposing candidate has violated
the Act for that election may file a complaint with the Commission requesting that action be taken.
If the Commission fails to make a “reason to believe” finding within 30 days after the filing of such
a complaint, the candidate may bring a civil action in the superior court to impose the civil penalties
prescribed by the Act.
Administrative Settlement
At any time during a complaint process, the respondent may choose to enter into a settlement
agreement with the Commission. A settlement agreement is not binding until it is approved by the
Commission and it is signed by the Executive Director and the respondent.
Administrative Hearing
If the Commission finds probable cause and issues an order and notice of penalties requiring
compliance, the respondent may file a request for an administrative hearing with the Office of
Administrative Hearings (OAH). The respondent must file the request for a hearing with the
Commission within 30 days of receipt of the order and notice of penalties. OAH is a state agency
that provides the opportunity for an impartial hearing administered by an Administrative Law Judge.
After the hearing, the Administrative Law Judge will issue a recommendation to the Commission,
which the Commission will consider at its next public meeting. The Commission may choose to
adopt the Administrative Law Judge’s recommendation or may choose to retain the Commission’s
original decision.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 55
II. Penalties
The Commission has the authority to assess civil penalties on both participating and
nonparticipating candidates. Certain penalties are prescribed in statute. For other violations, the
Commission may impose a penalty as it deems fit. No civil penalty negotiated by the Commission
or imposed by a court may exceed the greater of $10,000 or an amount equal to any contribution or
expenditure involved in the violation. In the case of a knowing and willful violation, the civil penalty
may not exceed the greater of $15,000 or an amount equal to 200% of any contribution or
expenditure involved in the violation. All civil penalties collected by the Commission are deposited
into the Clean Elections Fund.
Nonparticipating Candidates
1. The civil penalty for a violation by or on behalf of any candidate of any reporting requirement
shall be:
• $110 per day for candidates for the legislature; and
• $330 per day for candidates for statewide office.
The penalty imposed shall be doubled if the amount not reported for a particular election
cycle exceeds 10% of the adjusted primary or general election spending limit. No penalty
imposed shall exceed twice the amount of expenditures or contributions not reported. The
candidate and the candidate's campaign account shall be jointly and severally responsible for
any penalty imposed.
2. Any campaign finance report filed indicating a violation of the contribution or spending limits
involving an amount in excess of 10% of the sum of the adjusted primary election spending
limit and the adjusted general election spending limit for a particular candidate shall result in
disqualification of a candidate or forfeiture of office.
III. Audits
The Commission has the authority to conduct audits of all candidates. The Commission will
typically initiate an audit to aid in the investigation of an enforcement action, however the
Commission may initiate an audit at any time it deems necessary. The Commission also conducts
random audits throughout the election cycle of both participating and nonparticipating candidates.
For the 2003-2004 election cycle, the Commission will randomly select 10 candidates to be audited
after the Pre-Primary and after the Post-Primary campaign finance reports are filed.
The Commission contracts with an independent accounting firm to conduct all auditing work.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 56
Audit Procedure
If a candidate is selected for an audit, the Commission will notify the candidate and the accounting
firm in writing. The accounting firm will contact the candidate to explain the auditing process and
to set up an appointment for an entrance interview. The auditors will conduct all fieldwork at a site
provided by the candidate. The candidate must make all books and records available to the auditors
and must have personnel familiar with the records available to answer questions.
Preliminary Audit Report
After completion of the fieldwork, the auditors may prepare a written preliminary audit report. If
the auditors cannot complete a preliminary audit report, the candidate shall be notified in writing.
The preliminary audit report will include:
• An evaluation of procedures and systems employed by the candidate to comply with the Act
and rules;
• The accuracy of statements and campaign finance reports filed with the Secretary of State;
and
• Preliminary findings.
The preliminary audit report will be presented to the Commission at a public meeting, and if the
Commission approves the preliminary audit report, it will be provided to the candidate. Upon
receipt of the Commission approved preliminary audit report, the candidate has 10 days to submit
written comments to the Commission.
Final Audit Report
Taking in consideration any written comments provided by the candidate, the auditors will provide
the Commission with a final audit report at a public meeting. The final audit report may include the
identification of issues that warrant referral for possible enforcement proceedings. At the public
meeting, the Commission will vote to approve the final audit report. The candidate will be provided
with the final audit report at least 24 hours before the public meeting. Following Commission
approval of the final audit report, it will be sent to the candidate within 5 days after the public
meeting.
Chapter 10: Enforcement
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 57
Summary
􀂙􉥔 The Commission may initiate an enforcement procedure based on a written complaint filed
by a member of the public or based on a Commission staff recommendation.
􀂙􉥔 The Commission has the authority to assess civil penalties on both participating and
nonparticipating candidates. Penalties are set forth in statute and in Commission rule.
􀂙􉥔 The Commission has the authority to conduct audits of all candidates. The Commission
uses an accounting firm to conduct all auditing work.
References
􀂙􉥃 Compliance and enforcement procedures
• A.A.C. R2-20-201 through -228
􀂙􉥄 Delivery of subpoenas
• A.A.C. R2-20-103(G) & (H)
􀂙􉥁 Administrative hearing
• A.A.C. R2-20-224
􀂙􉥍 Maximum civil penalties
• A.A.C. R2-20-222
􀂙􉥃 Civil penalties for participating candidates
• A.R.S. § 16-942
􀂙􉥃 Civil penalties for nonparticipating candidates
• A.R.S. § 16-942(B) & (C)
􀂙􉥁 Authority to audit all candidates
• A.R.S § 16-956(B)
􀂙􉥁 Auditing procedures
• A.A.C. R2-20-401 through -406
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 58
Adjusted Spending Limit: The original spending limit as further adjusted to account for reported
overages by nonparticipating candidates or independent expenditures.
Candidate’s Campaign Committee: A political committee designated and authorized by a
candidate. A candidate campaign committee may have only one member: the candidate.
CCEC: Citizens Clean Elections Commission acronym.
Citizens Clean Elections Fund: The account through which participating candidates receive
public funds.
Contribution: Anything of value, including gifts, loans, in-kind contributions, advances or deposits
of money, made for the purpose of influencing an election.
Includes any of the following:
• A contribution made to retire campaign debt.
• Money or the fair market value of anything directly or indirectly given or loaned to an elected
official for the purposes of defraying the expense of communications with constituents,
regardless of whether the elected official has declared his or her candidacy.
• The entire amount paid to a political committee to attend a fund-raising or other political
event and the entire amount paid to a political committee as the purchase price for a fund-raising
meal or item. However, it is not considered to be a contribution if the actual cost of
the meal or fund-raising item is for the purchaser’s personal use and not for resale, and the
actual cost is the entire amount paid by the purchaser in connection with the event. The
exception does not apply to auction items.
• Unless specifically exempted, the provision of goods or services without charge or at a
charge that is less than the usual and normal charge for such goods and services.
[A.R.S. § 16-901(5)(a)(i-iv)]
Does not include any of the following:
• The value of services provided without compensation by any individual who volunteers on
behalf of a candidate, a candidate’s campaign committee or any other political committee.
• Money or the value of anything directly or indirectly provided to defray the expense of an
elected official meeting with constituents if the elected official is engaged in the performance
of the duties of his or her office or provided by the state or a political subdivision to an
elected official for communication with constituents if the elected official is engaged in the
performance of the duties of his or her office.
• An individual may use personal property, including their home, a church or community
room used on a regular basis by members of a community for noncommercial purposes, in
the course of volunteering for a candidate. Each adult in the household may contribute up
to $100 in value for invitations, food and beverages only. This does not count as a
contribution to the candidate. Any amount over $100, or for any other purpose, will need to
be reported as a contribution from the individual and is subject to individual contribution
limits.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 59
• Any reimbursed payment for personal travel expenses made by an individual who, on his or
her own behalf, volunteers his or her personal services to a candidate.
• The payment by a political party for printing and postage expenses for slate cards, sample
ballots, and other written materials that substantially promote three or more nominees of the
party for public office. This exemption does not apply if costs are for a display of the listing
of candidates made on telecommunications systems or in newspapers, magazines or similar
types of general circulation advertising.
• Independent expenditures.
• Monies loaned by a state bank, a federally chartered depository institution or a depository
institution. In order for this exemption to apply, this loan shall be deemed a loan by each
endorser or guarantor, in that proportion of the unpaid balance that each endorser or
guarantor bears to the total number of endorsers or guarantors, the loan shall be made on a
basis that assures repayment, evidenced by a written instrument, shall be subject to a due
date or amortization schedule and shall bear the usual and customary interest rate of the
lending institution.
• Legal or accounting services provided to a candidate at no cost. This exemption only applies
if the only person paying for the services is the regular employer of the person rendering the
services and if services are solely for the purpose of compliance with this title.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the party
in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political advertising.
• A transfer between campaigns to distribute monies raised through a joint fund-raising effort
in which each candidate pays a proportionate share of the fundraising expenses and receives
a proportionate share of the funds that are raised.
• An extension of credit for goods and services made in the ordinary course of the vendor's
business. This applies only if the vendor provides similar terms of credit to other
nonpolitical customers and makes a reasonable attempt to collect the debt. If the candidate
does not pay the debt after 6 months, it shall be deemed receipt of a contribution by the
candidate but not a contribution by the creditor.
• Interest or dividends earned by a political committee on any bank accounts, deposits or
other investments of the political committee.
• Expenditures made in accordance with the Officeholder Expense Rule.
[A.R.S. § 16-901(5)(b)(i-xiii)]
Expenditure: An expenditure is defined as:
• Any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of
value made by a person for the purpose of influencing an election in this state.
• A contract, promise or agreement to make an expenditure resulting in an extension of credit.
• The value of any in-kind contribution received.
[A.R.S. § 16-901(8)]
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 60
Does not include any of the following:
• A news story, commentary or editorial distributed through any telecommunications system,
newspaper, magazine or other periodical publication. This exemption does not apply if the
publications’ facilities are owned or controlled by a political committee, political party or
candidate.
• Nonpartisan activity designed to encourage individuals to vote or to register to vote.
• The payment by a political party of the costs of preparation, display, mailing or other
distribution incurred by the party with respect to any printed slate card, sample ballot or
other printed listing of three or more candidates for any elective office. This exemption
does not apply if the display of candidates is made on any telecommunications system or in
newspapers, magazines or similar types of general public political advertising.
• The political parties’ purchase of campaign materials including pins, bumper stickers,
handbills, brochures, posters, party tabloids and yard signs, which will be used by the party
in connection with volunteer activities on behalf of any nominee of the party. This
exemption does not apply if payments are used for the costs of campaign materials or
activities used in connection with any telecommunications system, newspaper, magazine,
billboard, direct mail or similar type of general public communication or political advertising.
• Any deposit or other payment filed with the Secretary of State or any other similar officer to
pay any portion of the cost of printing an argument in a publicity pamphlet advocating or
opposing a ballot measure.
[A.R.S. § 16-901(8)]
Election Cycle: The period between successive general elections for a particular office.
Exploratory Period: The period beginning on the day after a general election and ending the day
before the start of the qualifying period. For the 2004 election cycle, the exploratory period starts
November 6, 2002. The exploratory period ends December 31, 2003 for legislative candidates and
July 31, 2003 for Corporation Commission candidates.
Fair Market Value: The amount at which property would change hands between a willing buyer
and a willing seller, neither being under any compulsion to buy or sell and both having reasonable
knowledge of the relevant facts.
Family Contribution: Any contribution that is provided to a candidate's campaign committee by a
parent, grandparent, spouse, child or sibling of the candidate or a parent or spouse of any of those
persons.
Filing Officer: The official filing officer for the Commission is the Secretary of State’s office.
Fund: Citizens Clean Elections Fund; the account through which participating candidates receive
public funds.
General Election Period: The period beginning on the day after primary election day and ending
on general election day. For the 2004 election cycle, the general election period starts September 8,
2004 and ends November 2, 2004.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 61
General Election Spending Limits: The level of funding that participating candidates receive
from the Commission for the General Election Period. See chart on page 22.
Independent Candidate: A candidate who is not affiliated with a party recognized on the ballot.
Independent Expenditure: An expenditure by a person or political committee, other than a
candidate’s campaign committee, that expressly advocates the election or defeat of a clearly
identified candidate, and that is made without cooperation or consultation with any candidate,
candidate committee or candidate agent.
In-Kind Contribution: A contribution of goods or services or anything of value that is not a
monetary contribution.
Nonparticipating Candidate: A candidate who does not become certified as a participating
candidate under the Clean Elections Act, and, consequently, does not receive public funding to run
his or her campaign.
One-Party-Dominant Legislative District: A district in which the number of registered voters
registered in the party with the highest number of registered voters exceeds the number of registered
voters registered to each of the other parties by an amount at least as high as 10 percent of the total
number of voters registered in the district. One-party-dominant legislative districts are determined at
the beginning of the qualifying period, or January 1 of an election year.
Original Spending Limit: A limit specified by primary election spending limits and general election
spending limits, or a special amount expressly set for a particular candidate (i.e., unopposed or
independent candidates).
PAC: political action committee acronym.
Participating Candidate: A candidate who becomes certified as participating pursuant to A.R.S. §
16-947, and receives public funding to run his or her campaign.
Personal Monies: Assets to which the candidate has legal right; salary and other earned income
from candidate employment; dividends and proceeds from the sale of stocks or investments; income
from trusts; proceeds of loans obtained that are not contributions; proceeds from legal games of
chance; and family contributions.
Political Committee: A candidate, association or combination of persons organized for the
purpose of influencing the result of any election. This includes political activity advocating the
election or defeat of a candidate for election, an initiative, referendum, recall, measure or
proposition.
Primary Election Period: The nine-week period ending on primary election day. For the 2004
election cycle, the primary election period starts July 6, 2004 and ends September 7, 2004.
Primary Election Spending Limits: The level of funding that participating candidates receive
from the Commission for the Primary Election Period. See Chart, page 21.
Glossary of Terms
Citizens Clean Elections Commission 2003-2004 Nonparticipating Candidate Guide 62
Qualifying Period: The period beginning on the first day of August in a year preceding an election
for an election for a statewide office, or on the first day of January of an election year for an election
for legislator, and ending 75 days before the day of the general election. For the 2004 election cycle,
the qualifying period starts for legislative candidates on January 1, 2004 and ends August 19, 2004.
For Corporation Commission candidates, the qualifying period starts August 1, 2003 and ends
August 19, 2004.
Rule: An agency statement that implements, interprets or prescribes law or policy, or describes the
procedure or practice requirements of an agency.
SOS: Secretary of State acronym.
Statewide Office: Those offices that hold control over the entire state, not a certain portion within
the state. Statewide offices include governor, secretary of state, state treasurer, attorney general,
superintendent of public instruction, corporation commissioner and mine inspector.
Substantive Policy Statement (SPS): A written expression informing the general public of an
agency’s current approach to, or opinion of, the requirements of the federal or state constitution or
statute, administrative rule or regulation, or final judgment of a court of competent jurisdiction,
including, where appropriate, the agency’s current practice, procedure or method of action based
upon that approach or opinion. An SPS is advisory only. An SPS does not impose additional
requirements or penalties on regulated parties, confidential information or rules.
Surplus Monies: The remainder of a political committee’s money after all of its expenditures have
been made and its debts have been extinguished.
Unopposed: In the primary election for the House of Representatives, a candidate is unopposed if
there is no more than one other candidate from the same party, and if there is no opposition for the
same office in the general election by an independent or a candidate from another party. In the
primary election for statewide office and Senate, a candidate is unopposed if there are no other
candidates from the same party, and if there is no opposition for the same office in the general
election by an independent or a candidate from another party. In the general election for the House
of Representatives, a candidate is unopposed if there is no more than one other candidate on the
ballot competing for election in the same district. In the general election for statewide offices and
Senate, a candidate is unopposed if there is no opponent on the ballot competing for the same
office.
Citizens Clean Elections Commission Timeline—2003-2004 Election Cycle
Nonparticipating Candidates (Legislative Offices)
Feb. 2
2004
JANUARY 31
Original
Campaign
Finance Report
due to the
Secretary of State
(Feb. 2, 2004)
Period 1 covering
Nov. 26, 2002 to
Dec. 31, 2003
March June June July
1 9 30 6
Secretary of State to
calculate Candidate
signature
requirements
Deadline to file
Nominating
Petitions and
Papers with the
Secretary of State
(June 9, 2004)
JUNE 30
Original Campaign
Finance Report
due to
the Secretary of State
(June 30, 2004)
Period 2 covering
Jan. 1, 2004 to
May 31, 2004
Beginning of
16-week period
prior to General
Election for
Independent
Expenditures
PRE-PRIMARY
Original
Campaign Finance
Report
due to the Secretary of State
(August 26, 2004)
Period 3 covering
June 1, 2004 to
August 18, 2004
Primary Election Period—All Candidates
July July August
13 27 26
General Election Period—All Candidates
Sep. Sep.
7 8
Oct. Oct.
7 21
POST-PRIMARY
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 7, 2004)
Period 4 covering
Aug. 19, 2004 to
Sep. 27, 2004
PRE-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 21, 2004)
Period 5 covering
Sep. 28, 2004 to
Oct. 13, 2004
Nov. Dec.
2 2
POST-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Dec. 2, 2004)
Period 6 covering
Oct. 14, 2004 to
Nov. 22, 2004
January
February
March
April
May
June
July
August
September
October
November
1
1
1
1
1
1
1, 6, 13, 20, 27
3, 10, 17, 24, 25, 26, 27, 30, 31
1, 2, 3, 7, 8, 14, 21, 28
5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
1, 2, 3
Trigger Reports
Reports that must be filed by nonparticipating candidates. The Original
Report must be filed on the next due date after expenditures exceed 70%
of the original primary election spending limit. In the primary election
period, a Supplemental Report must be filed when expenditures exceed
an additional 10% of the original primary election spending limit. In the
general election period, a Supplemental Report must be filed when con-tributions
less expenditures through the primary election exceed 10% of
the original general election spending limit.
*please refer to the tables*
Office 70%/10% of Primary
Election Spending Limits
70%/10% of General
Election Spending Limits
Legislature $7,924 / $1,132 $11,886 / $1,698
Trigger Reporting Dates
PRIMARY
ELECTION
GENERAL
ELECTION
Revised 3/1/2004
**All reports need to be filed electronically, using the
Campaign Finance Software**
Deadline to submit
candidate statements &
photos to the CCEC for the
primary election pamphlet
Deadline to submit
candidate
statements &
photos to the
CCEC for the
general election
pamphlet
Citizens Clean Elections Commission Timeline—2003-2004 Election Cycle
Nonparticipating Candidates (Statewide Offices)
Feb. 2
2004
JANUARY 31
Original
Campaign
Finance Report
due to the
Secretary of State
(Feb. 2, 2004)
Period 1 covering
Nov. 26, 2002 to
Dec. 31, 2003
March June June July
1 9 30 6
Secretary of State to
calculate Candidate
signature
requirements
Deadline to file
Nominating
Petitions and
Papers with the
Secretary of State
(June 9, 2004)
JUNE 30
Original Campaign
Finance Report
due to
the Secretary of State
(June 30, 2004)
Period 2 covering
Jan. 1, 2004 to
May 31, 2004
Beginning of
16-week period
prior to General
Election for
Independent
Expenditures
PRE-PRIMARY
Original
Campaign Finance Report
due to the Secretary of State
(August 26, 2004)
Period 3 covering
June 1, 2004 to
August 18, 2004
Primary Election Period—All Candidates
July July August
13 27 26
General Election Period—All Candidates
Sep. Sep.
7 8
Oct. Oct.
7 21
POST-PRIMARY
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 7, 2004)
Period 4 covering
Aug. 19, 2004 to
Sep. 27, 2004
PRE-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Oct. 21, 2004)
Period 5 covering
Sep. 28, 2004 to
Oct. 13, 2004
Nov. Dec.
2 2
POST-GENERAL
Original
Campaign
Finance Report
due to the
Secretary of State
(Dec. 2, 2004)
Period 6 covering
Oct. 14, 2004 to
Nov. 22, 2004
January
February
March
April
May
June
July
August
September
October
November
1
1
1
1
1
1
1, 6, 13, 20, 27
3, 10, 17, 24, 25, 26, 27, 30, 31
1, 2, 3, 7, 8, 14, 21, 28
5, 12, 19, 20, 21, 22, 25, 26, 27, 28, 29
1, 2
Trigger Reports
Reports that must be filed by nonparticipating candidates. The Original
Report must be filed on the next due date after expenditures exceed 70%
of the original primary election spending limit. In the primary election
period, a Supplemental Report must be filed when expenditures exceed
an additional 10% of the original primary election spending limit. In the
general election period, a Supplemental Report must be filed when con-tributions
less expenditures through the primary election